Definition of Marketing • the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Exchange • a process by which two or more persons give and receive something of value.
The Marketing Concept -Focus on the Customer • Market focus • Customer orientation • Co-ordinated marketing • Profit seeking
Drawbacks of Marketing Concept • ignores public • influences values & ideas
Recent Development-- Societal Marketing Concept • Concerns public welfare and social responsibility • e.g. CLP
The role of Marketing • Marketing Analysis • Marketing Planning • Marketing Implementation • Marketing Control
Marketing Research • Gathering, recordingand analysis of data • to solve a specificproblem that is tooimportant to be answered by guessing • an informational input to decisions
What M.R. can tell ? • How satisfied the consumers are • How products are perceived • Evaluate the sales potential • Determine the effectiveness of ad • Predict the impact of price changes
The Marketing Research Process Defining the Problem & Research Objectives Developing the Research Plan Implementing the Research Plan Interpreting and Reporting the Findings
1. Defining the problem and research objectives • to find out the real problem but not the symptom • set the research objectives • research approaches: • exploratory • descriptive • causal
2. Developing research plan • Determine specific information needs • Source of information • secondarydata • Internal • External • primarydata
Benefits Low cost Less effort Less time Sometimes more accurate Some information only from secondary sources Benefits and Limitations of Secondary Data Limitations • Collected for other purpose • No control over data collection • Potential accuracy problem • May not be reported in required form • May be outdated • May not meet requirements • A number of assumptions made
Planning primary data collection • research approach • contact methods • sampling plan • research instruments
Research approach • Observational research • survey research • focus group • experimental research
Contact methods • Telephone survey • mail questionnaires • personal interviews
Sampling plan • sampling unit • sampling size • sampling procedure
Sampling Techniques Probability Sampling • All population members have a known probability of being in the sample Simple Random Sampling • Each population member, and each possible sample, has equal probability of being selected Stratified Sampling • The chosen sample is forced to contain units from each of the segments or strata of the population
Sampling Techniques (Contd.) Cluster Sampling • Involves dividing population into subgroups • Random sample of subgroups/clusters is selected and all members of subgroups are interviewed • Very cost effective • Useful when subgroups can be identified that are representative of entire population
Research instrument The most common instrument is questionnaire • what questions to ask • question structure • wording of question • order of question
Implementing the research plan • collecting and analyzing data
Interpreting and reporting the finding • Interpret the findings, draw conclusions and report to management • the manager willutilize these findingsto make decisions
Consumer behaviour • refers to the buying behaviour of final consumers • it includes the analysis of factors that influences purchase decisions and product use
Definition Consumer behaviour studies how individuals, groups,and organizations select, buy, use, and dispose of goods, services, ideas,or experiences to satisfy their needs and desires.
Consumer Behaviour Marketing and other stimuli Buyer’s black box Buyer’s response
External factors 1. Culture
2. Social factor - reference groups
5. Advertising e.g. Fancl
Internal factors 1. Perception • the process by which we select organize and interpret these stimuli into a meaningful and consistent picture
2. Motivation • to fulfill some kind of need Self-actualization Needs Esteem Needs Esteem Needs Social Needs Security Needs Physiological Needs
3. Learning • creates changes in behaviour through experience and practice
4. Attitude • Consistently favourable or unfavourable evaluation, feelings and tendencies toward an idea.
5. Personality • refers to the unique psychological characteristics that lead to relatively consistent and lasting responses E.g. Vita Distilled Water
6. Demographic factors • such as age, sex, income, education, occupation,….
Industrial market • Consists of all the individuals and organizations acquiring goods and services that enter into the production of other products and services that are sold, rented, or supplied to others
Types of buying situations • Straight rebuy • modified rebuy • new task buying
Industrial buying process • Recognise the problem • determine product needs and describe product specifications • search for suppliers • assess and select suppliers • evaluate overall performance
Participants in the industrial buying process • Users • influencers • buyers • deciders • gatekeepers
Factors affecting industrial buying behaviour: External factors • Level of demand • economic outlook • budget constraints • supply conditions • political/legal and competitive environmental changes • rate of technological change