Question 1: Discuss and describe each element of the external marketing environment.
The external marketing environment is made some elements that control it. The first one is demographic which a study on population over time is. This can be looked at in aspect of size, structure, location, race, population distribution or density, and gender and mortality rates. It’s a very essential aspect since it produces the consumers of the commodities being produced according to market segments. As a marketer one needs to understand the demography of his target market. The target market can be classified according to age or the year of birth i.e. the Generation Y which is the group of people that were born between 1977 and 1994, Generation X which entails the group people that were born between 1965 and 1976 and the eldest group known as Baby boomers which is the group of people born between 1946 and 1964. In this way a marketer gets to understand how to make his marketing plan to suit all groups since each group has different values and characteristics while buying and the type of products they purchase are quite different too.
The economy is an uncontrollable element of the external marketing environment therefore a marketer should study it and tell if the economy is peaking or moving negatively. If the economy is moving negatively the banks give fewer loans affecting the amount of capital one may invest in a business and less revenue comes into the economy since people are uncertain about their income. This is the opposite when it comes to the peak season since there is enough revenue going to the economy and enough money in banks to lend as loans for capital.
Another important element of the external marketing environment is the natural environment. This is the amount of natural resources in form of input in which a company may use and may also affect the marketing activities. Some of these factors are level of pollution, governmental interference, and reduction in availability of raw materials. Too much government interference makes it harder for companies to achieve their goals. A reduction in availability of raw materials makes it hard for companies to come up with their products while pollution can adversely work against a company’s reputation.
Technological environment is another element of the external marketing environment which is the fastest changing environment in macroeconomics. This is in the development in medical sector, nuclear weapons and automobiles and use of credit card. The development of the market assists in coming up with new products and new consumers who need to be updated on the trends of product development so as to be part of it. A company needs to advance technologically so as to avoid being outdated
Political environment as another element of the macroeconomic environment it which is involves the statute and government agencies which affects the society organizations and individuals. Some of the products in the market are regulated and controlled by the federal laws and the state to ensure the target market is appropriate. Some of the products include beer, cigarette, which should not be marketed to young children. Marketers should closely monitor as laws and regulations change.
Finally there are cultural institutions which is an elements of the macro economic that control the marketing through believes and values from a specific group of people that is normally passed down to different generations and is impossible to change. In spite of those strong values there are others known as secondary believes which can be influenced around by other people which is the marketers main focus of attention of his target audience.
Question 2: Describe and discuss the overall concept of customer satisfaction, value and loyalty.
The customer satisfaction is the number of customers or clients experience with the firm is more than the satisfied goals or objectives. It is a term that is usually used in the business to measure the amount of products or services supplied by affirm to surpass the customer satisfaction. This satisfaction usually uses the metric of customer satisfaction to monitor and manage the company.
The customer satisfaction is usually seen as the indicator of the performance of a company and it is usually part of the balanced scorecard. Customer’s satisfaction ratings in many organizations have powerful effects. This focuses employees on fulfilling the expectations of the customers. These ratings warn of all the problems and that can affect the future sales and profitability. A brand becomes loyal to customers when it gains affirmative word-of-mouth marketing.
Firms need reliable and effective measures of satisfaction to manage the customer satisfaction. When a firm wants to do a research on the satisfaction of the he looks on the customers are really happy about their product. When the customers’ expectations are high and are brought down their level of satisfaction goes down.
Customer value is a statement of marketing that states that a customer should use a service or a buy a product. This value is specifically a target for the potential customers rather than other groups like employees, suppliers and partners. This statement is clearly defined to encourage customers that one good or service will contribute more value.
Customer loyalty entails attracting the correct customer and making them to buy the first time and more times and buy products or services in bigger quantities and bring more customers to your firm. Customer loyalty is built by treating one’s team well so that they have the same level of treat to the customers, keeping in touch with one’s customers by writing them emails and sending them thank you cards, showing care to one’s customers and rewarding one’s customers for choosing you over others.
Question 3: Discuss and describe the 4 primary factors that influence buyer behavior.
Complex Buying Behavior is the process in which a consumer undergoes so as to arrive to the purchase of a specific product. The decision is normally influenced by many other factors internal and external and external factors that greatly affect the buying decision the consumer makes known as complex buying behavior. Some of the processes a consumer undergoes in the buying behavior are: Need recognition which is the first process refers to how you get to identify you need to purchase a certain product, information search is the next process that consumers go through in identifying what brand of the product they need. The next step is in evaluation of different purchasing options and alternatives of the exact need recognized previously then the purchase decision where the actual buying takes place. Finally the consumer undergoes the post purchase behavior which are the doubts the consumers goes through due to lack of assurance.
Dissonance Reducing Buyer Behavior is what happens when a consumer is purchasing an expensive unusual and risky purchase but cannot see a big difference between the brands. This is mostly when buying commodities that highly involve decision by the consumer since they purchase is infrequent and involves a large sum of money and yet the price range among alternatives.
Habitual Buying Behavior is the kind of buying behavior that occurs under low involvement of the consumer and there is less significant difference in brands. The consumers also do not involve themselves highly in product categories but keep buying the same brand out of habit and not loyalty to the product’s brand. The consumers also appear to be less involved in low costs products which are the most frequently purchased.
Variety Seeking Buying Behavior is the type of buying behavior is also influenced by low involvement but the brand difference is significant hence the need for a switching brands in search for the best or a different impact from a different brand. Switching from one brand to another is as a result of search for variety but not dissatisfaction
Question 4: Levels of market segmentation
The first level of market segmentation is the mass marketing where it involves multiple levels of segments of the market. The process of segmentation of the market begins with the definition of the overall mass market. These mass markets are always diverse to efficiently aim with a single marketing program. This means that the larger segments are supposed to broken down to sub-markets. The main aim is to find groups of customers in the market that are homogenous and sub dividing them into market segments.
The second level of segmentation is multi segment marketing where it encompasses general information of the level of segmentation. The general information used in this global level of marketing is the specification when it comes to audience for instance age, geographic layout, median income and buying patterns. This segment is not broken down to segments in anyway but analyzed as a whole group with the behaviors generalized to be used in the profile of the market.
Niche marketing is the third market segment that is a result of already segmented market segments that had been derived from a wider product market. This is because each segment has consumers that are more similar to other segments in relation to the needs of a consumer and the purchase like characteristics more their mother segments. Niches are smaller and narrowly defined than their parent segments so they end up creating competition among themselves which is considered desirable since they can earn the firm a competitive advantage that cannot be matched. This is done by matching the market resources that are limited on satisfying the niches
Local marketing is the fourth level of market segmentation is where the target market increasingly lies to the regional marketing. This usually happens when the programs of marketing being tailored to the wants and needs of groups of local customers.
The fifth market segment is micro marketing which emphasizes on how to understand the market at its local levels and the personalizing messages to each consumer under direct marketing. Micro marketing therefore refers to the marketing strategies which are tailored into local market. individual customers or market segments.
Question 5: Discuss and describe the characteristics or criteria for effective segmentation.
The first criterion for effective segmentation is measurability which is the degree to which purchasing power and size of the formed segments are measured. Measurability of the segment has to be possible so as to determine the values used in the segmentation with the efforts that are justifiable. In the social marketing this criterion is important in the behavioral and psych graphic variable. The second criterion is accessibility where consumers are reached by appropriate communications of marketing. The segment should be accessible, reachable and servable by an intervention. Substantiality is the third criterion where the market segment is considered whether it has a warrant large enough for consideration. This criterion aims to make it possible for a segment to approach, serve and attract every segment with a particular mix of segments. Differentiability is the fourth criterion which is the way different audiences have different characteristics that are distinguishable and respond differently to mixes of intervention. Actionable is the fifth criterion used in the market segmentation where it is the service, attraction and approach of different segments with different mix of methods.
Question 6: Describe and discuss the 6 steps in the marketing research process
The first step in marketing research process is the defining a problem. This is where the marketer should take into consideration the purpose of the study, the significant back ground information the information that is needed and the way the information is going to be used in making the decision. This step involves the discussion of the marketing plan with the decision makers, analysis of the secondary data; interviews with the experts of the industry and conducting some qualitative research for example target groups. The research can be designed and carried out properly.
The second step is the developing of a research plan. This basically entails the formulation of a theoretical framework or setting of objectives, diagnostic models, hypothesis, research questions and identification of characteristics that can influence the design of the research. This step is usually guided by the management and the industry experts, simulations and case studies, secondary data analysis, pragmatic considerations and qualitative research.
The third step is the collection of the information. This usually entails the face to face with the respondents where the information they give is usually highly used. The purpose of conducting this is to present information needed in the making of the final decision. The data and information is usually got from the respondents by conducting a survey experiment. Designing a questionnaire or a sampling plan is also a way of collecting information from the respondents.
Analysis of the information is the fourth step in the marketing research. Analysis of data is the verification of the information and data collected for instance ensuring that the questionnaires have been filled correctly. There are two kinds when it comes to analysis of data. The first one is using the univariate techniques, where data is analyzed when there is a single entity of the each element. Here each and every entity is analyzed independently. The second type of analysis is the use of multivariate techniques. This is where the analysis is done when there is more than one measurement in each element and the variables are analyzed concurrently.
The fifth step is the presentation of findings. The findings should be presented in a comprehensible format that can be used by the making of decision. Findings should be presented using tables, graphs, figures to enhance clarity to the management. The last step is the decision making where it is settling on the best alternatives. When the data and information has been collectected, analyzed and presented the management usually settle on one of the research they are comfortable to work with.
