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PowerPointPresentationbyThomasMcKaig,RyersonUniversity,MarketingResearchfocusisontheconsumersneedsthisphilosophyisthemostconsistentwithlong-termsuccessofthefirmProduction-OrientedEmphasizesdevelopmentoftheproductandproductionefficienciesoverotheractivitiesSales-OrientedFavoursproductsalesoverproductionefficienciesandcustomerpreferences,Figure5.1,CoreMarketingActivitiesforSmallBusiness,TheNatureofMarketingResearch,StepsIntheMarketingResearchProcessIdentifyingtheinformationalneedWhydoweneedtoknowthis?SearchingforsecondarydataWhohasresearchedthistopicalready?CollectingprimarydataWhodoweaskandwhatdoweaskthem?InterpretingthedataGottheinformation,nowwhatdoesitmean?,continued,TheNatureofMarketingResearch,MarketingResearchThegathering,processing,reporting,andinterpretingofmarketinformationSecondaryDataMarketinformationthathasbeenpreviouslycompiledbyothersPrimaryDataNewmarketinformationthatisgatheredbythefirmconductingtheresearch,MethodsforCollectingPrimaryData,ObservationalMethodsHumanMechanical,QuestioningMethodsSurveysMailTelephonePersonalinterviewsExperiments,IngredientsofaMarket,EstimatingMarketPotential,TheSalesForecastApredictionofhowmuch(inunitsand/ordollars)ofaproductorservicewillbepurchasedwithinamarketduringaspecifiedperiodoftimeAnessentialcomponentofabusinessplanthat:Assessesthenewventuresfeasibility.Assistsinplanningforproductscheduling,settinginventorylevels,andpersonneldecisions,Figure5.3,DimensionsofSalesForecastingDifficulty,SalesForecastsandLimitations,Thisisapredictionofhowmuchofaproductorservicewithinamarketwillbepurchasedduringaspecifictimeframe.Formallydefined,asalesforecastestimateshowmuchofaproductorservicecanbesoldwithinagivenmarketinadefinedperiodoftime.Salesforecastingcanandwillbeinaccurateeitherduetoinexperienceorinconclusiveforecastingassumptions.,TheForecastingProcess:TwoDimensionsofForecasting,TheStartingPointBuildupprocessAllpotentialbuyersinvarioussubmarketsareidentifiedandthentheestimateddemandisaddedup(bottom-up).,UnderstandingPotentialTargetMarkets,MarketAgroupofcustomersorpotentialcustomerswhohavepurchasingpowerandunsatisfiedneedsFocusstrategyAtypeofcompetitivestrategyinwhichcostandmarketingstrategiesareachievedwithinnarrowmarketsegmentsMarketSegmentationThedivisionofamarketintoseveralsmallergroupswithsimilarneeds.,TheFormalMarketingPlan,MarketAnalysisCustomerprofileAdescriptionofpotentialcustomersinatargetmarketSalesforecasts“mostlikely,”“pessimistic,”and“optimistic”TheCompetitionProfileofkeymanagementpersonnelOverallstrengthsandweaknessesRelatedproductsbeingmarketedortestedLikelihoodofcompetitorsentryintotargetmarket,continued,TheFormalMarketingPlan,MarketingStrategyTotalproductand/orserviceplanDecisionsaffectingthetotalproductDistributionplanDecisionsregardingproductdeliverytocustomersPricingplanSettinganacceptablevalueontheproductPromotionalplanCommunicatinginformationtothetargetmarket,SatisfyingtheCustomer:TheKeytoCustomerLoyalty,ThreeBasicBeliefs:Superiorcustomerservicecreatescustomersatisfaction.Customersatisfactionproducescustomerloyalty.Smallfirmspossessgreatpotentialforprovidingsuperiorcustomerservice.,ComponentsofCustomerSatisfaction,Themostbasicelementoftheproductorservicethatcustomersexpectallcompetitorstodeliver.Generalsupportservices,suchascustomerassistance.Arecoveryprocessforcounteractingbadexperiences.Extraordinaryservicesthatexcelinmeetingcustomerspreferencesandmaketheproductorserviceseemcustomized.,WhyFirmsFailtoAdoptaConsumerOrientation,TheStateofCompetitionWithnocompetitionorhighdemand,firmsfocusonproduction.ProductionFocusofSmallBusinessManagersSmallbusinessmanagerstendtohavestrongproductionskillsandweakmarketingskills.FocusonthePresentSmallbusinessmanagerstendtofocusoncurrentsuccesswhichistheresultofanoveremphasisonselling.,WaystoDevelopExtraordinaryServices,NamingNamesGreetcustomersbyname.CustomCareKnowwhatyourcustomerswant.KeepinginTouchCommunicatefrequentlywithyourcustomers.Boo-BooResearchAsklostcustomerswhytheywentelsewhere.,TheCustomerServiceCommitment,Exceptionalcustomerserviceprovidesapotentialcompetitiveedgeopportunitytosmallfirms.Beingattentiveandrespectfulofcustomersleadstocustomersatisfactionandtosuccess.Superiorlevelsofcustomerservicearenoteasytoattainandarenotcheap.,EvaluatingCustomerService,Customerserviceproblemsarethemainsourceofcustomercomplaints.Waystoaddresscomplaints:WatchforproblemsTalktocustomersCheckupontheserviceEvaluatingcustomerserviceisessentialofanybusiness,UnderstandingtheCustomer,KeyPointsaboutCustomers:Customersarefirstandforemosthumanbeings.Acustomerssatisfactionresultsfromtheirinteractionwiththefirm.Understandingcustomersleadstomorecustomersatisfactionandloyalty.,SimplifiedModelofConsumerBehaviour,Figure5.5,Stage1inConsumerDecisionMaking,ProblemRecognitionThecurrentstateorachangeincurrentstateisnottheidealstateofaffairsdueto:ChangeinfinancialstatusChangeinhouseholdcharacteristicsNormaldepletionofaresourceProductorserviceperformancePastdecisionsAvailabilityofproducts,Stage2inConsumerDecisionMaking,InformationSearchandEvaluationEvaluationcriteriaThefeaturesofaproductorservicethatcustomersusetocomparebrands.EvokedsetAgroupofbrandsthatacustomerisbothawareofandwillingtoconsiderasasolutiontoapurchaseproblem.,Stages3&4inConsumerDecisionMaking,PurchasedecisionDecidinghowandwheretomakethepurchasedecision:Storeversusnonstore(catalogue,TV,andtheInternet)Post-purchaseevaluationCognitivedissonanceTheanxietythatoccurswhenacustomerhassecondthoughtsimmediatelyfollowingapurchase.,Post-PurchaseActivitiesofConsumers,Figure5.6,ConsumerBehaviourModel,PsychologicalFactorsNeedsCanbeclassifiedasphysiological,social,psychological,andspiritual.Consumersneedsarenevercompletelysatisfied.Difficultyoccursindeterminingwhichneedcanbesatisfiedbyaspecificproductorservice.Aserviceorproductcansatisfymorethanoneneed.,continued,ConsumerBehaviourModel,PsychologicalFactors(continued)PerceptionsTheindividualprocessesthatgivemeaningtothestimuliconfrontingconsumers.PerceptualcategorizationTheprocessofgroupingsimilarthingssoastomanagehugequantitiesofincomingstimuli.Brandloyalty(aperceptualbarrier)makesitdifficultforcompetingbrandstoreachtheloyalconsumer.,continued,ConsumerBehaviourModel,PsychologicalFactors(continued)MotivationsGoal-directedforcesthatorganizeandgivedirectiontothetensioncausedbyunsatisfiedneeds.Providethebehaviouralimpetusforconsumerstoacttofulfillaneed.Marketingismotivationanddoesnotcreateneeds.AttitudesAnenduringopinionbasedonknowledge,feeling,andbehaviouraltendency.,continued,ConsumerBehaviourModel,SociologicalFactorsCultureBehaviouralpatternandvaluesthatcharacterizeagroupofconsumersinatargetmarket.SocialclassSocietaldivisionsthathavedifferentlevelsofsocialprestige.,continued,ConsumerBehaviourModel,SociologicalFactorsReferencegroupsGroupsthatanindividualallowstoinfluencehisorherbehaviour.OpinionleadersAgroupleaderwhoplaysakeycommunicationsrole.,ProductDefinition,ProductAtotalbundleofsatisfactionaservice,agood,orbothofferedtoconsumersinanexchangetransaction.Includesboththemainelement(physicalproductorcoreservice)andcomplementarycomponents(features).,ServiceMarketingversusGoodsMarketing,Characteristics,PureServicesMarketing,PureGoodsMarketing,TangibilityProduction/ConsumptionStandardizationPerishability,IntangiblegoodsOccuratthesametimeLessstandardizationGreaterperishability,TangiblegoodsOccuratdifferenttimesMorestandardizationLessperishability,HybridServices/GoodsMarketing,Figure5.7,ProductStrategy,ProductStrategyThewaytheproductcomponentofthemarketingmixisusedtoachieveafirmsobjectives.ProductitemThelowestcommondenominatorintheproductmixtheindividualitemProductlineThesumoftherelatedindividualproductitemsProductmixconsistencyThesimilarityofproductlinesinaproductmix,continued,ProductStrategy,ProductDevelopmentProcessIdeaaccumulationIncreasingthenumberofideasunderconsiderationBusinessanalysisProductsrelationshiptotheexistingproductlineCostofdevelopmentandintroductionAvailablepersonnelandfacilitiesCompetitionandmarketacceptance,continued,ProductStrategy,ProductDevelopmentProcessTotalProductDevelopmentBranding,packaging,pricing,andpromotionProductTestingProvingtheproductdesignthroughconsumerreactiontotheproduct.,ProductLifeCycle,Figure5.8,TheProductorServiceConcept,Corefeaturesensure:Theproductandserviceofafirmmeetstheneedsofthetargetcustomer.Basedonlocation,uniqueproducts,qualityofservice,storedesign,advertisingortechnology,Secondaryfeaturesarenon-criticalinnatureandmayincludeattractivepackaging,oraninterestingwindowdisplay.,BusinessAnalysis,P
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