Exploring YourMARKETChapter IVMarkets & MarketingMarket = those people or organizations that may be interested in buying a product or service, have the resources to buy it, and are permitted by law or regulation to do soMarketing = satisfying the customer at a profithe business function that identifies your customers and their wants and needshe engine that drives !"" business decisionsMarketing #esearchPrimary = research conducted directly on a sub$ect or sub$ectsSecondary = research carried out indirectly through other e%isting resources&rimary #esearch Methods&ersonal interviewselephone surveys'ritten surveys&rimary #esearch Methods(ocus groupsAfocus groupis a form of qualitative research in which agroupof people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.)bservation&rimary #esearch MethodsrackingTracking studies also allow marketers to study changes in the customer market for their brands, such as increases and decreases in category usage, changes in customer needs, development of new customer segments, and changes in customer loyalty and retention. #eview of books & records*econdary #esearch Methods)nline searches!rticle & book searchesCompetitor websitesVisualize +our Customer,se market research to find out-Who your potential customers areWhere you can reach themWhat they want and needHow they behaveWhat the size of your potential market isCustomer #esearch*urveys(ocus groups#esearch reportsIndustry #esearchInterviews)bservationracking'ritten sources of statistical data.ooks & articlesCompetitor websitesrade associations & chambers of commerceCustomer /ecision0Making!warenessInformation search1valuation of alternatives/ecision to purchase1valuation of purchase)wning Customer &erception(eatures create benefits2Feature = a fact about a product or serviceBenefit = what the feature can do to meet a customers needs3eeds, wants, and demands are different2Market *egmentationstrategy which involves dividing a broad target marketinto subsets of consumers, businesses, or countries who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.Market *egmentationMarket segment = customers who have similar response to a certain type of marketing*egmentation methodsGeographicDemographicPsychographicBehavioralGEOGRAPHI SEGME!TATIO!separates a market into different geographical boundaries which can impact the marketing mi of product, price, promotion and channel to market."EMOGRAPHISEGME!TATIO!separates a market by demographic indicators including gender, age, household type, education level and income.PSYHOGRAPHI SEGME!TATIO!separates a market by lifestyle as well as values and beliefs. #EHA$IORA%SEGME!TATIO!separates a market by shopping and buying behaviors. !re you an online shopper or do you prefer to handle products in the store56ow often do you shop5 /o you research a purchase carefully before making a decision, or do you tend to buy on impulse5 THE O!S&MER #&YI!G "EISIO! PROESS.+- !ngel,"lackwelland#ollathe need recognition is the first and most important step in the buying process2 If there is no need, there is no purchase2 his recognition happens when there is a lag between the consumer7s actual situation and the ideal and desired one2I2 311/ #1C)83II)3 9 )."1M #1C)83II)3 -type o' need()type o' need()*unctional need- the need is related to a feature or specific functions of the product or happens to be the answer to a functional problem2 Social need- the need comes from a desire for integration and belongingness in the social environment or for social recognition2 !eed 'or c+ange- the needhas its origin in a desire from the consumer to change2 II2 I3()#M!I)3 *1!#C66e willsearch more or less information depending on the comple%ity of the choices to be made but also his level of involvement2 Internal in'ormation- this information is already present in the consumer7s memory2External in'ormation- his is information on a product or brand received from and obtained by friends or family, by reviews from other consumers or from the press2 III2 !"1#3!IV1 1V!",!I)3)nce the information collected, the consumer will be able to evaluate the di''erent alternati,e( that offer to him, evaluate the most suitable to his needs and choose the one he think it7s best for him2IV2 &,#C6!*1 /1CI*I)33ow that the consumer has evaluated the different solutions and products available for respond to his need, +e -ill .e a.le to c+oo(e t+e product or .rand t+at (eem( mo(t appropriate to +i( need(/ hen proceed to the actual purchase itself2)nce the product is purchased and used, the consumer will e,aluate t+e ade0uacy -it+ +i( original need( :those who caused the buying behavior;2 !nd whether he has madethe right choice in buying this product or not2 6e will feel either a (en(e o' (ati('action for the product :and the choice;2 )r, on the contrary, a di(appointment if the product has fallen far short of e%pectations2V2 &)*0&,#C6!*1 .16!VI)#!n e%ample of Consumer .uying /ecision &rocess-STAGE 1 2 !EE" REOG!ITIO!)It7s sunday night2 +ou7re hungry :internal physiological stimuli; and there is nothing in the fridge2 +ou will order food :statement of need;2STAGE 3 2 I!*ORMATIO! SEARH+ou already have ordered to the Indian restaurant in your street last month :internal information;2 ! friend recommended a pizzeria in your neighborhood :eternal information from environment;2 !nd this morning you7ve found a flyer for a sushi restaurant in your mailbo% :eternal information from advertising;2STAGE 4 2 A%TER!ATI$E E$A%&ATIO!)+ou have a bad opinion of the Indian restaurant since you7ve been sick the last time :inept set;2 he pizzeria is both recommended by your friend and also happens to be a well0known brand :positive perception $ evoked set;2 !s for the sushi restaurant, it got good reviews on ripadvisor :positive perception $ evoked set%2STAGE 5 2 P&RHASE "EISIO!- !fter evaluating the possibilities, you7ve decided to choose the well0known pizza delivery chain2 In addition, a new episode of your favorite V show is broadcasted tonight on V2STAGE 6 2 POST7P&RHASE #EHA$IOR)he pizza was good :positive review;2 .ut you know there was too many calories and you regret a little bit :mied feelings about yourself;2 he ne%t time you will choose the sushi restaurant2 here is less fat in sushi than pizza :net purchase behavior;2 8rowth?2 Maturity@2 /ecline Where is your product&service in the '()* +s your market saturated*Introduction *tage)onsumer awareness and acceptance of the product are low.,ales gradually increase due to promotion and marketing activities.)ost of development and marketing activities are high.(ow profit or even incurs loss."uyers are individuals who want to be the first in the community to own the product. 8rowth *tage,ales rapidly rise as the product becomes popular.'rofits for the firm and industry increase.'roduct distribution is epanded.'romotion still plays a vital role in marketing the product.Maturity *tage,ales are still rising at the beginning of this stage but the rate of increase has declined. -he sales curve will reach its peak while profits begin to fall. 'rice competition increases which forces inefficient competitors to get out of the industry./ecline *tage-here is a sharp fall in sales volume while profit curve becomes almost flat or horizontal. -here is also a decline in the number of competitors..ou can only survive if you will specialize in marketing your product./nce the product is no longer profitable, it will be eliminated from the market. Market &ositioning/istinguish your product9service from others offered to your market segment28oal is to clearly communicate how your product9service differs from competitors2*ample positioning statement- 01eneral 2otors% is the 0leading 3, automobile maker% that 0provides affordable cars% to 0American families%.S8OT Analy(i(+t studies the financial resources, physical facilities, management capabilities, the market, production process, information system, sources of supply, and social environment. +t is a tool of evaluating the strengths, weaknesses, opportunities and threats associated with a particular product or service. I!"IATORS O* S8OT)STRE!GTHS)Cheap and abundant raw materials*ufficient funds!vailability of echnology&resence of *killed 'orkersManagement and technical e%pertise of the entrepreneur8ood Auality9service1ase of production*mall capitalI!"IATORS O* S8OT)8EAK!ESSES)6igh &rices&oor Buality9*ervice'eak Management"ack of *killed 'orkersIrregular supply,nattractive design6igh Costs of &roductionI!"IATORS O* S8OT)OPPORT&!ITIES).ig demand for the product or service(avorable government policy9support*carcity of the product9service&oor Auality of e%isting product or service!bsence of product9service&ossibilities of good profitsI!"IATORS O* S8OT)THREATS)*hortage of raw materials at a given time1ntry of many competitorsIncreasing costs of production1%pectation of unfavorable government laws, such as ta%es/eteriorating peace and order1mergence of unfair demands of workers through union activitiesThank you for listening