Marketing 2

The Microenvironment

the operations close to the company that affect its ability to serve and engage its customers

Spi-3c

Suppliers, publics, intermediaries, company, competitors, customers

The most important actor in a companies microenvironment

Customers

The Macroenvironment

larger societal forces that affect the microenvironment

Dent-PC

demographic, economic, natural, technological, political, and cultural forces

Demography

the study of human populations in terms of size, density, location, age, gender, race, occupation, etc.

Baby boomers

ages between 1946 and 1964, post WWII era

Wealthiest generation in US history

Generation X

ages between 1965 and 1980

Most educated generation to date

Millennials

ages between 1981 and 1996

They tend to be frugal, practical, connected, mobile, and impatient

Generation Z

ages between 1997 and 2012

Want instant gratification, prefer to shop in person than to wait online for it to be delivered

Generation alpha

ages 2012 to present

High influence on family purchasing decisions

Generational marketing

some products might attract one generation but turn off another

The economic environment

economic factors that affect consumer purchasing power and spending patterns

The Natural Environment

the physical environment and the natural resources needed as inputs by marketers or that are affected by marketing activities

E.g. covid-19, natural disasters can affect marketing strategies, homeschooling growth

Environmental sustainability

strategies and practices that create a world economy that the planet can support indefinitely

The Technological Environment

forces that create new technologies, creating new product and market opportunities

E.g. antibiotics, air travel, internet, smartphones, AI, etc.

The political environment

Laws, government agencies, and pressure groups that influence or limit organizations and individuals in a society

E.g. inflation reduction act promoting sustainable energy

Legislation regulation

encourages competition and ensures fair markets

Public policy

sets of laws and regulations that influence and limit businesses for the good of society

Socially responsible behavior

doing the right thing

Cause related marketing

companies link themselves to worthwhile causes

Brand activism

taking stands on social, political, and environmental issues

Cause-related marketing

a brand supporting a cause

The cultural environment

institutions and other forces that affect a society's basic values, perceptions, preferences, and behaviors

Core beliefs

values formed from parents to children, schools, businesses, religious institutions, and the government

Secondary beliefs

values more open to change

Passive stance

accepting the marketing environment and reacting/adapting to it

Proactive stance

developing strategies to change the marketing environment

Big data

large diverse sets of information that keep growing

flexibility, scalability, cost-effectiveness, fault tolerance

Big data advantages

Customer insights

understandings of customers and the marketplace that becomes the basis for creating customer value, engagement, and relationships

Marketing information system (MIS)

people and procedures dedicated to assess information needs, getting the information, and helping decision makers to use the information to generate actionable customer and market insights

Internal data

collections of consumer and market data from sources within the company's network

Competitive market intelligence

systematic monitoring, collection, and analysis of publicly available information in the marketplace

Marketing research

the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

Just in time research

fast, agile marketing information and research

Step 1 of the Marketing Research Process

Defining the problem and research objectives

Step 2 of the Marketing Research Process

Developing a research plan for collecting information

Step 3 of the Marketing Research Process

Implementing the research plan, collecting, processing, and analyzing the data

Step 4 of the Marketing Research Process

Interpreting and reporting the findings

Exploratory research

gather preliminary information that will help define problems and suggest hypothesis

Descriptive research

describe marketing problems, situations, or markets

Causal research

test hypotheses about cause and effect relationships

Primary data

information collected for the specific purpose at hand

e.g. Research approaches, Contact methods, Sampling plan, Research instruments

Secondary data

information that already exists elsewhere, collected for another purpose

e.g. data bought from external companies, internet search engines, public databases

Customer relationship management (CRM)

capturing and using customer data from all sources to manage customer interactions, engage customers, and build customer relationships

Marketing analytics

tools, technologies, and processes by which marketers find meaningful patterns in big data to gain customer insights and gauge market performance

The most common mistake is viewing big data, marketing analytics, and AI as processes

most common big data, marketing analytics, and AI mistake

Intranet

private network that allows employees to collaborate, share info, communicate

Extranet

treating external party like an internal party relative to proprietary information

Intrusions on consumer privacy

customers resist/mistrust marketing research due to fears of personal information, manipulate buying, track them too much

Consumer buyer behavior

the buying behavior of all final consumers, individuals, and households that buy goods and services for personal consumption

Buyer's black box

buyer's characteristics and decision process

Buyer responses

buying attitudes and preferences, purchase behavior (what the buyer buys, when, where, and how much), brand engagements and relationships

Cultural, Social, Personal, Psychological

Characteristics affecting consumer behavior

Membership groups

groups that have direct influence to which a person belongs

Reference groups

direct or indirect points of comparison in forming a person's attitudes or behavior (expose a person to new behaviors and lifestyles)

Word of mouth influence

personal words/recommendations from other consumers

Influencer marketing

influencers/celebrities to promote a company's offerings

Online social networks

online communities where anyone can share opinions/info

Brand personality

human traits attributed to a specific brand

sincerity, excitement, competence, sophistication, ruggedness

5 brand personality traits

Self concept

"we are what we consume" people's possessions contribute and reflect who they are

Motivation research

subconscious motivations underlying consumer's emotions and behaviors toward brands

Interpretive consumer research

researching consumer psyches and develop better marketing strategies

Maslow's hierarchy of needs: self actualization needs

self development and realization

Maslow's hierarchy of needs: esteem needs

self esteem, recognition, status

Maslow's hierarchy of needs: social needs

sense of belonging, love

Maslow's hierarchy of needs: safety needs

security, protection

Maslow's hierarchy of needs: physiological needs

hunger, thirst

The buyer decision process

need recognition, information search, evaluation of alternatives, the purchase decision, and post purchase behavior

The customer journey

the sum of ongoing experiences consumers have with a brand that affect their buying behavior, engagement, and brand advocacy over time

1. Awareness

2. Interest

3. Evaluation

4. Trial

5. Adoption

5 Stages in the adoption process

Adoptive profiles: Innovators

they try new ideas at some risk

Adoptive profiles: Early adopters

they adopt new ideas early but carefully

Adoptive profiles: Early mainstream

they adopt new ideas before the average person

Adoptive profiles: Late mainstream

they adopt an innovation only after a majority of people have tried it

Adoptive profiles: Lagging adopters

they adopt the innovation after it has become something or a tradition

product characteristics on rate of adoption: Relative advantage

the degree to which an innovation appears to be superior to existing products

product characteristics on rate of adoption: compatability

the degree to which the innovation fits the values and experiences of potential consumers

product characteristics on rate of adoption: Complexity

the degree to which the innovation is difficult to understand or use

product characteristics on rate of adoption: Divisibility

the degree to which the innovation may be tried on a limited basis

product characteristics on rate of adoption: Communicability

the degree to which the results of using the innovation can be observed or described to others

Business buyer behavior

buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

Market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved

Differences between consumer and business markets

Derived demand

business demand that comes from the demand of consumer goods