principles of Marketing Homework help

BBA 3201, Principles of Marketing 1

Course Learning Outcomes for Unit III Upon completion of this unit, students should be able to:

3. Describe the impact that changes in the external business environment have on an organization. 3.1 Evaluate the overall industry health of which an organization is a

member. 3.2 Compare the similarities and differences of multiple competitors of an

organization.

4. Explain how the marketing mix is used to reach the target market. 4.1 Assess the competitive environment of an organization with respect to

its ability to effectively reach its target market.

6. Explain the importance of positioning as it relates to brand strategy leading to brand equity. 6.1 Appraise a company’s overall brand perception relative to its

competition.

Unit Lesson Business–to-business (B2B) contrasted with business-to-consumer (B2C) basically examines who the customer is. As expected in the case of the B2B, the customer is another business, while in the case of the B2C, the customer is the end customer or consumer. B2B customers might include intermediaries such as wholesalers and retailers, government units such as federal and state agencies, and nonprofit organizations (Perreault, Cannon, & McCarthy, 2015). Much has been written in the literature about the differences in effective marketing approaches for each. At the very least, the B2C might be directed more at the product or service with a focus on the value of the transaction. While there is an immense target market, the sales cycle tends to be short. Brand equity is achieved through repetition and there is a significant amount of emotional buying. B2B on the other hand, is much more focused on building relationships and maximizing the value of that relationship. There is a much smaller target market and a significantly longer sales cycle. Brand identity and equity is a result of a nurtured relationship and the decision-making process is much less emotional and more rational. The chart below provides a good summary of these differences.

B2C B2B

Size of target market

Large Small

Who is target market

consumer business

Relationship with customer

high low

Buying process

emotional rational

Reading Assignment Chapter 6: Business and Organizational Customers and Their Buying Behavior Chapter 7: Improving Decisions with Marketing Information

Suggested Reading See information below.

UNIT III STUDY GUIDE

Marketing Research

BBA 3201, Principles of Marketing 2

Sales cycle length

short long

Development of brand equity

through repetition through relationship- building

In the case of B2C, there is almost an attachment to the product whereas in the B2B sector, the process seems to be more methodical in nature. One of the largest differences is within the sheer number of decision makers that tend to be involved in the B2B buying decision process. This could include the actual user, engineering or R & D (research and development) personnel, purchasing managers, top management personnel, or possibly research assistants or other administrative personnel. Perreault et al. (2015) identify each of these individuals as taking on a variety of roles including gatekeeper, decider, buyer, influencer, or user. Another significant difference is that of the buying process. As stated earlier, the process tends to be much longer in length, even compared to the high-ticket purchases in which a consumer might be involved. The B2B buying process is categorized by three different categories including the new task buy, straight rebuy, and modified rebuy. These are differentiated below:

 New task buy—there is a new need within the organization requiring a large amount of information and time before the order is placed.

 Straight re-buy—this is a routine purchase that requires little additional information and little time. Many times this purchase is completed by an administrative person within the organization.

 Modified re-buy—this is a middle of the road purchase where the product being ordered is the same but something in the specifications has changed. This could be something as simple as size or color or something a bit more complicated. Some additional information is required and the purchase time falls between that of the new task buy and straight re-buy.

Market research is one of the most important tasks within an organization. It provides the company with valuable information allowing for a process of better decision making within the organization. Perreault et al. (2015) identify a five-step approach to the market research process as detailed below:

1. Define the problem—this identifies the objectives of the research. 2. Analyze the situation—research what is currently happening in the internal

and external environment of the business. 3. Getting problem-specific data—conduct the research. 4. Interpret the data—once the data is collected, analyze it in order to make the

efforts useful. 5. Solve the problem—use the research results in making decisions that will

solve the problem. Market research has taken on many forms through the years. From secondary research where the marketer is analyzing existing data to primary research where the marketer is putting together survey instruments specifically to solve their problem, the overall use of market research has increased significantly. The increased use of the internet has not only increased the amount of information but also has increased the accessibility of this information. According to McDaniel and Gates (2015), the world’s internet population totals almost 3 billion users with roughly one-third of the world having internet access. The United States leads in the number of people who have internet access. Internet research continues to grow as the most popular means of collecting data. This might have something to do with the fact that online survey taking is faster and, with the sophisticated search functions, access is easier and faster than traditional methods.

BBA 3201, Principles of Marketing 3

Another area of marketing research that is quickly expanding is that of the marketing research online community (MROC). This consists of a selected group of consumers who agree to fill out surveys and/or participate in an ongoing dialogue. This provides researchers with a larger population of data as well as a more comprehensive review because the survey-takers have previously agreed to participate in this MROC. Mobile internet research provides another interesting research tool. McDaniel points out that over 56% of American adults own a smartphone and 57% use their phone to go online (2015). Clearly, our phones have become an important element in our lives; thus, market researchers can find value in using it as a tool to gather information. Mobile research enjoys advantages such as an increased response rate, added convenience for the responder, broader reach, and ultimately a more comprehensive content. This all adds up to decreased costs for the market researcher.

References McDaniel, C., & Gates, R. (2015). Marketing research (10th ed.). Hoboken, NJ: Wiley. Perreault, W., Jr., Cannon, J., & McCarthy, J. (2015). Essentials of marketing: A

marketing strategy planning approach (14th ed.). New York, NY: McGraw-Hill.

Suggested Reading Click here to access a PowerPoint presentation of the Chapter 6 material. Click here to access a PDF version of this presentation. Click here to access a PowerPoint presentation of the Chapter 7 material. Click here to access a PDF version of this presentation. Click here to access the video, Collecting Quality Information For Marketing Decisions (copied with permission from McGraw-Hill).