Marketing: Social Influences (for consumer behaviour): o Family Initiator Person who suggests buying product Influencer A person

rson whose view or advice influences the buying decision Decider The individual with the money and authority to choose which product to buy Buyer User o Culture o Reference Groups People to whom an individual looks when forming attitudes about an object Direct member (UBC student, Sauder, etc) Indirect member Aspirational (want to be in) Dissociative (dont want to be in) Opinion leaders, trendsetters (early adopters) Word of mouth : powerful, hard to control Consumer Decision Process o Not a linear process (skip steps, go back and forth between steps) o Consumer Decision Process: Recognize Need Search for Info Type of product, value and cost, time, previous knowledge/experience, range of choice, perceived benefit of the product, locus of control, level of risk Type of product: o High Shopping (know less about) o Low Convenience (everywhere) o Low Specialty (specific product) Evaluate Alternatives Evoked Set Model: All brands -> known brands - > acceptable brands -> purchased brand Choose/Purchase Evaluate Post purchase Buyers remorse o Opportunity for other companies

Role of Market Research o Used to reduce uncertainty and increases quality of decision making o Aids decision making but does not substitute for it o Research the past and present to aid your judgement about the future Process o Define the problem (establish hypothesis) o Design the research project Design data collection Identify data types and sources Determine sample plan and size o Collect data o Analyze o Present results o o Remember! Know how you will use the information before you collect it A well defined problem helps researchers get the exact data that they need

Research design o Identify type of data and how youre going to collect it Primary Data Data you collect yourself Qualitative vs. Quantitative Secondary Data Data from someone else Sampling is important, must be relevant to target group

Exploratory research o Helps you define your problem and clarify your research question and test questions o Use with small sample, casually (focus groups) o Not always scientific o Done early in process Primary research methods o Surveys and Interviews o Observation o Controlled Experiments (ie. Test market) Challenges of taste testing o Brand expectations o Packaging

Testing Environment

Segmentation o Dividing the market into homogenous slices: Geographic = location (city, region, country, climate, topography, geography, urban , rural) Demographic = characteristics Psychographic = self values, self concept, lifestyles, needs and motives, perceptions, attitudes, beliefs (most rich view of consumers) Behavioural = relationships to the product (benefit sought, usage rate, loyalty) o Segment Attractiveness Can your segment differentiate your product from others? Is it a segment that you can effectively promote to and can you serve it? If you get the product out there, is your segment going to actually respond to the product?

Targeting Strategies Undifferentiated (one product with one marketing mix, for example sugar, electricity) Differentiated (multi segment) Concentrated (all resources to serve a single segment) [for example, software for dental offices. Very specific marketing. Most small businesses start here] Micromarketing (one-to-one) Target customers at specific level, occupation, business type. For example: consulting services, architecture (design firms)

Positioning tips Either be the best in a category or best in a segment Product ladder Clear, distinct Positioning = Target Market + Differentiation

Positioning statement is only used internally. Elements of the statement may show up in ads but the 4ps come from the positioning statement brand equity = the premium price you can charge because consumers know about your brand

Promotion: Getting the right message to the right customer through the right medium Think how their target audience is going to best respond to the message o Sometimes the consumer does not decode the message properly, which presents a problem (DD:) o Study consumer behaviour to help understand how they decode Feedback loop how the consumer responds to the message: o Consumer go into the store, visit website, brand awareness increases, consumer complains/compliment the product Complications: o Noise -- consumer is always trying to deal with noise around them Noise could be other advertising, promotions, people diverting their attention, life issues, etc. Anything that prevents your consumer from paying attention o Fields of experience -- a marketers perspective is their field of experience, a consumers field of experience is very different Based on ones attitude, perceptions, experiences IMC: Integrated Marketing Communication o Multiple ads, multiple channels Obama IMC case study: simple message (Hope and Change), using many communication channels, very consistent across Telus IMC simple messages, simple and vibrant ads, animals/nature themes, uses every type of media possible

AIDA model: Awareness/Attention; Interest; Desire; Action o Promotion should move consumers toward action o We use the AIDA model with IMC to be more successful with communications o Awareness: Get the consumers attention, break through the noise Use a multi channel approach, innovative ads/promotion o Interest: Once you have their attention, they must be persuaded to investigate (hang on to them for a little bit) o Desire: Use the message and their investigation to create desire; they have to be motivated to want the product o Action: This desire leads to action Purchase is just one type of action

They can recommend to other people Increase brand awareness, brand loyalty Theres sometimes a lag effect; so you dont always know that AIDA has led to immediate effects Think, feel, do

Promotions Short term initiative to drive response/demand/more sales Push o Dealer uses to push the product upon consumers o Trade shows, dealer incentives, dealer contests, dealer training programs/product info sessions, spiff o Training programs product knowledge session (PKT) Pull o Ways to get the consumer to demand more product o Samples, bonus packs (variation of bundling), premiums (GWP: gifts with purchase), contests, coupons, refunds, swag

Personal Selling Long-term focus Problem-solving role Team selling Bring people outside of the firm to provide more ____ Sales Process o Prospecting & Qualifying: Pick the person, (in retail stores: prospects come to you, they are pre-qualifying themselves) o Pre-approach: Think of all possible questions, concerns; plan and research o Presentation & Handling Objections: Pitch your product; ask a lot of questions and adapt/adjust message based on feedback youre getting; can include demonstration o Closing: Transaction is closed o Follow-up: Reduce buyers remorse

Direct Marketing (pg 326) Direct contact with consumer that is not personal selling Examples: Direct mail, direct response (eg catalogues, infomercials) Telemarketing, e-commerce is both direct marketing and personal selling Vending machines

Cross Promotion Marketing partners share promotional costs Includes co-branding and co-marketing Co-marketing is less commitment: o For example Monopoly and McDonalds: they have not created a new product o Monopoly: build brand equity o McDonald: Build demand and excitement/ drive sales

Global Marketing: You still do situation analysis, etc. Then decide what your marketing strategy is (whether to standardize or adapt to the market) Target Market o You may not always go after the same target market when you move to different parts of the world o Example: Its a teenager product in North America, but its an adults product somewhere else (say Europe) Adapt 4 Ps to target market o Cultural, social and religious values o Product: Labelling (different languages), size of product o Price: Look at economic situation, legal aspects and regulations in certain countries to price from country to country o Distribution: Some areas are hard to get into (eg. Nestle has a floating grocery store that travels up and down the Amazon river)

Ethics o Look at ethics from a 4Ps +research perspective Ethics is about intention o Are you intending to abuse your power or harm your consumers taking away by o Eg. Walmart price wars with smaller companies and driving them out of business, Walmart harms consumers by taking away their choice o Note that this is North American perspective of ethics o Marketing is a very visible part of a company: thats why marketing is often targeted for being unethical Products: o Planned obsolescence (not illegal; its just unethical) When manufacturers build into their design of product an earlier end date than necessary Theres nothing wrong with making your product not the highest quality Huge grey area (this is prevalent through all of ethics) Technology: the pace of innovation and development is so quick that companies have to get their product into the market as fast as possible (they could wait until its perfect, but then they would never get to market) Dont confuse with product strategy Pricing: o A lot of laws around pricing since its a very visible P o Dumping: Flooding a different market (international or somewhere else) with products that are priced below cost in order to control the market o Deceptive pricing: extra fees (especially on credit card) after you pay o Predatory pricing: a powerful company that prices lower to get rid of smaller competition; going after a competitors price Research: o Privacy protection o Deception

60 Minute Ethics Video [Barbara Walters packaging size. 20/20 investigation] o Downsizing works because its not obvious, decrease size rather than increase price o However consumers are not made known of this fact (pricing is visible and product size is not as visible o People look at prices not sizes