Videos Flashcards
Market penetration
Selling same product to same market but trying to sell more
Fairly high rate of sucess => 90% or more
Product development
Taking same target but introducing new products
70% chance of success
Market develpment
Taking successful product and moving it to new markets
50% chance of success
Diversification
Going after a brand new product for a brand new prodcut
Lowest chance of success because of so many uknowns
10% - 20% chance of success
School offering classes to new students who go to different universities to try to increase summer enrollment
Market development
Market penetration
Geting exisitng customers to buy more
highest rate of success
coming up with more reasons for them to use the product
starbucks: frequent buyer cards - reward existing users for buying more
- give away after a level of loyalty
Alkaselzer => they decide to take 2 alkaselzers to take better “plop plop fizz fizz” - sells doubled over night
Electronic superstore sends special coupon to its current customers offering them a special discount during slow week
Market penetration
*trying to get exisitng customer to come back one more time
Product development
Selling additional products to the same customer
ex. tide liquid => tide to go pen, tide stain release
Market development
Take same product, move it to new markets
Adjust sweetner depending on customer they are going to
Diversifcation
New product, new audience
Honda sells cars and generators
Strategies in order of success
Market penetration
Product development
Market developpment
Diversification
Elements of a creative strategy? Objective
Trying to get customer to buy for the first time?
or they already know you? trying to get new uses
*increases odds of success
Business to business purchases
Make more purchases than do consumers
Producers
Manufacturers
firms, mines
financial institutions
ORganizaitonal buying is different
Orders are larger
Buying in bulk for raw materials
Organizations buy for a purpose: to use or resell
Basic purchasing needs are economic for organizational buyers - small differences in price can make a big difference in what seller they choose
*some emotional component
Business to business process
Formal
Vendor analysis is consistently used
Larger businesses operate with:
buying center
- buyer, user, influences, gatekeepers, deciders
PO Req
Includes all specifications needed
given to vendors, vendors come back with bids
Buying Center
Formal or informal
Typically involves multiple influences
Varies from purchase to purchase
Buyer and gatekeeper stay same
Decider, user, and influencer may all differ
*typically only buyer position appears on organizational chart
Evaluating Organizational Buying Influences
Vendor Analysis Considers all influences
Behavioral needs are important
Economic importances!!!!
Ethical conflicts may arise
Purchasing may be centralized
Is it ok for a buyer?
As a buyer, you need to be familiar with your company’s policy and be familiar about what you can and cannot accept from vendors
As a buyer, your word is everything
*dont accept anything regardless of what the policy is
Straight Rebuy
Routine purchase
when companies order something very frequently
have a reliable vendor
ex. copying paper at an office
Straight rebuy situatiosn
More difficult to get customers to buy yours instead
New-Task buying
Large capital expenditure
ex. building new technology, building a building
infrequent
try to get a lot of opinions
Will take a lot of time, look at a lot of different vendors
Rare, high risk
Modified Rebuy
Happens in 1 of 2 situtiaons
- Straight rebuy supplier stops performing well
2.
Had a reliable vendor, now there are problems, door is open for new vendors now =>
modifeid rebuy
Segment
Demographics
Geographics
Behavior
Segmenting Business Customers
Type of customer
Demographic variables
How the customer will use the product?
Type of buying situation
Purchasing methods
Current relationship between buyer and seller
NAICS
Try to group companies in a similar line of business
look at governmental information on that industry
Government Market
30% of GDP
Often has a “approved” supplier list
requires cometitive bids usually
FCPA - law that says you cannot buy help in dealing with foreign governments
- you cannot pay a bribe
Marketing Information System
Single data system used to come up with key data to come up with decisions
Used for strategy planning
Typically reserach is a _______________ position
staff
*people working in marketing research are consulting that work with internal clinets
________________ is the most important step
Defining the problem
What information do we already have?
Situation analysis - educates the researcher
Two ways of gathering primary data
Observing
Questioining
Quantitative research
Often closed ended
Specific samples
Projectable to whole population
One of the most popular types of qualitative research?
Focus group
-
Qualitative research:
not projectable
no numbers
A reseracher wants to study 1,000 consumers and needs informatoion about a lot of personal and sensitive issues:
Mail - no one is face to face and more likely to answer sensitive information
Random sample
Each respondent has an equal chance to participate in the survey
More likely you will have a sample that is representative of the total population
however: is methodology biased?
How are non-responders replaced
Population sampe and confidence intervals
Deals with how that sample was drawn
Most common confidence interval:
95%
Sampling error
Concerns how the sample was drawn and the sie of the sample
Non-sampling error
Everything else that can affect the results
Double barreled
Not testing a questionaire and beeing poorly designed
Ask a question that is actually two questions and asking respondent to give one response
Leading question
Dont you see any problems with using your quesitons online?
Loaded question?
Should people be allowed to protect themselves with mase?
Lead people to a certain response
Overstate
how much would you pay for a nice pair of comfy sunglasses that protect your eyes greatly
___________ are based on experimental design
Test markets
When you partner, you can ________________
plan better
