Market Research It is the systematic process of design, procurement, analysis and presentation o f data and findings to a specific marketing

situation facing the company. Market Research Process Define the problem and research objectives An effective market research covers five steps Develop research plan Information gathering Information analysis Present results Marketing Information System (MIS) Consists of people, equipment and procedures for gathering, organizing, analyzin g, evaluating and distributing information, timely and accurate information to m arketing decision makers. Marketing Managers Marketing Information System (MIS) Information Development Evaluation of the nec. information Marketing environment that are the target market channels Mkt. Competitors mega Forces Public Analysis Planning Implementation Control Organization Internal records Mkt specific info. Information sharing Analysis of the info. Information Mkt. Decisions and marketing communications Information Sources Secondary Information This type of data consists of information already exists somewhere and that has been collected for another purpose. Primary information Is information that meets a specific purpose or for a specific research project. Target Market It consists of a set of buyers sharing common needs or characteristics that the company wants to cover. The selection of target markets requires three main steps:

1. Identify and define the profiles of different groups of buyers who might requ ire products or different marketing mixes (market segmentation). 2. Select one o r more markets in which entry (selection of target markets). 3. Establish and co mmunicate key differentiating benefits of products on the market (market positio ning). Market Segmentation • The division of a market into different groups of buyers with different needs, characteristics or behaviors, which could require different blends of products or marketing. Market Segment Market • Consists of a large group of people who can be identified within a market and has a desire, purchasing power, geographical location, buying attitudes and buyi ng habits. Steps in segmentation, targeting and positioning of marketing: 6. Development of the marketing mix for each target segment 5. Development of po sitioning for each target segment 4. Development of the segment or segments Goal 3. Development of measures of the attractiveness of the segment 2. Developing p rofiles of resulting segments 1.Identificación basis for market segmentation Market positioning Market orientation Market Segmentation Types of market segmentation • • Geo-demographic Segmentation • Psychographic Segmentation • Behavioral Segme ntation Demographic segmentation The market is divided into groups based on variables such as: • Religion Family Size Age Income Race Family Life Cycle Sex Nationality Occupation Geo Requires the division of market into different geographical units such as: • Nations • Regions • States • Cities • Counties • Neighborhood Psychographic Segmentation Divide guests into groups according to social class, lifestyle or personality ch aracteristics and values. Behavioral Segmentation Divide guests into groups based on knowledge about a product, their attitude tow ards him, the way they used or how they respond to it. Consumer behavior Buyer Decision Process: Recognition of the need to search for information Alternative Assessment Post-purchase behavior Purchase Decision Recognition of the need When the buyer recognizes a problem or deficiency. The need may be caused by int

ernal or external stimuli. The publicity may cause the recognition of a need. Information Search Sources of consumer information are constituted of four groups: Personal: Family, friends, neighbors and acquaintances. Public: Mass media, cons umer rating organizations. Business: Advertising, sellers, distributors. From experience: management, testi ng and use of the product. Evaluation of alternatives Consumers adopting attitudes, judgments or preferences; towards different brands through a process of evaluation of attributes.€Example: The buyer's decision st age in which the consumer uses the information to evaluate the marks optional. H otels: Location, cleanliness, atmosphere, price. Purchase Decision The stage of the buying decision process in which the consumer actually buys the product. Post-purchase behavior After purchasing the product, the consumer will experience some level of satisfa ction or dissatisfaction. Consumer Behavior Model: Other marketing incentives Stimuli Product Price Plaza Economic Technological Po litical Cultural Buyer Features Personal Social Psychological Buyer Decision Pro cess • Recognition of the problem. • Search information. • Evaluation of alterna tives. • Decision to purchase. • Conduct post-purchase. Buyer Cultural Promotion Decisions • Selecting prod. • Selection of brand. • Sel ection of vendor. • Time of purchase. • Amount of purchase Factors that influence consumer behavior Culture Subculture Social Class Cultural Reference Group Family Social Roles and Personal position • Age and stage of life cycle • Employment • Economic Status • Lifestyle • Perso nality and self-concept Psychological Motivation Perception Learning Beliefs and attitudes Buyer Industrial Markets All organizations that buy goods and services for use in the manufacture of othe r products and services, or with the intent to resell or rent them to others, in order to make a profit. Model of Business Buyer Behavior Environment Mkt stimuli. Other stimuli Organization Cart shopping center purchase decision p rocess (individual and interpersonal influences) (organizational influences) C hoice of product or service provider Election Terms quantities ordered and delivery time Payment Terms of Service Answers buyer Product Price Promotion Place Cultural Economic Political Technological Competitive Factors that influence business buyer behavior Environmental Social

Level of primary demand econ perspective. Conditions of supply Policy Objectives Structure Systems Procedures Personal Empathy Position Sensing Authority Psychological Age Buyers Education Position in Job. Risk Personality Index of organizational change technology policy and regulatory developments Buying Process business The process by which business buyers determine the need for products and service s they buy, and identify, evaluate and choose between the brands and suppliers o ptional. Business Buying Process 1. Recognition of the problem The company recognizes that there is a problem or a need that must be met by acquiring a product or service specific. 2. Overview of the need for the general characteristics are described and the nu mber of items that requires the company. 3. The product specification and specific buying organization decides the best t echnical features of the product in accordance with a required objective. 5. Provider Search The buyer comes to finding the most appropriate suppliers. 4. Analysis of the value A focus on cost reduction, in which the components are studied carefully to determine whether you can redesign, standardize or manufact ured with less expensive production methods. 6. Request for Proposal The buyer will invite qualified suppliers to submit prop osals. 8. Specification routine order After selecting suppliers, the buyer negot iates the final order, listing the technical specifications, the required amount , and so on. 7. Supplier selection before selecting a provider, you specify the attributes yo u look for in suppliers. 9. Performance Review calls The buyer satisfaction with suppliers and decide whether to continue with the arrangements, change or cance l them. Buying situations in business • • Direct Repurchase Repurchase task changed • New systems • Purchasing Direct Repurchase Situation in the purchase of business in which the buyer ordering again routinel y without any modification. It is based on the satisfaction of previous purchase . Modified rebuy The buyer wants to modify product specifications, prices, terms or simply switch providers. Regularly modified rebuy requires additional participants in decisio n making on both sides. New Task A business buying situation in which the buyer purchases a product or service fo r the first time.€It must decide on product specifications, suppliers, price lim its, payment terms, quantities ordered, delivery times and terms of service.

Purchasing Systems The purchase of a package solution to a problem, they are all separate decisions involved. Buy from a single vendor. Product Anything that can be offered to a market for attention, acquisition, use or cons umption and which may satisfy a desire a specific need. Product Levels Packaging Facility Name cies characteristic of the benefit or service mark Servi ce Delivery and subsequent sale fundamental credit quality Level Design Increased Real Fundamental Guarantee Product Classifications The products are classified into three groups: • Non-durable goods Durable Goods • Services • Non-durable goods They are tangible products that are normally consumed in a single application, o r very little airtime. Durable goods Durable goods are tangible goods that normally survive many uses. Services Services are intangible products, inseparable, variable and perishable. The serv ices require more quality control, supplier credibility and adaptability. Product Mix The set of all products and goods that a given company offers for sale. Depth re fers to the number of variants that are offered for each product line. Amplitude refers to how many different product lines the company works. Length refers to many different product lines the company works. Consistency refers to how closely related are the product lines in terms of end use. These four dimensions of the product mix allows the company to expand its busine ss in four ways. Mark A brand is a name, term, sign, symbol or design, or a combination of the above, whose purpose is to identify the goods or services of one seller or group of sel lers and differentiate them from competition. A brand can convey up to six levels of meanings: 1. Attributes: A brand brings t o mind certain attributes. An example is Mercedes suggests expensive cars, well built, with excellent engineering, durable, high prestige. 2. Benefits: Attributes must be translated into functional and emotional benefit

s. Example: attribute "durable" could translate into functional benefit "will no t have to buy a car for several years." The attribute of "expensive" translates into the emotional benefit of "the car makes me feel important and admired." 3. Values: The brand also says something about the values of the producer. Merce des represents high performance, security and prestige. 4. Culture: The brand may represent a certain culture. The Mercedes represents G erman culture: organized, efficient, high quality. 5. Personality: The brand may represent a certain personality. Mercedes boss cou ld suggest a practical (person), a reigning lion (animal) or an austere palace ( object). 6. User: The brand suggests the kind of consumer who buys or uses the product. Expe ct to see a senior executive with 55 years driving a Mercedes, not a secretary f or 20 years. Brand decision Assign a mark or not to assign a brand name selection of the sponsor's brand man ufacturer Private label Brand Brand Brand combined authorized Make no mark Protection Selection Brand repositioning of the brand repositioning is not re-branding New brands Branding line extension brand extensions Multimarcas Packing The packaging and presentation covers the activities of designing and producing the packaging or wrapping of a product. The well-designed packages can create co nvenience and promotional value. Several factors have contributed to the increased use of packaging and marketing tool. Company image and brand Packaging contribute to the company instant recog nition or brand. Innovation An innovative presentation can confer great benefits to consumers and profits to producers. Prosperity of consumers implies that they are willing to pay a little more for t he convenience, appearance and prestige of the best packaging. Self In a regular supermarket consumer passes in front of some 300 products per minute. Package should Therefore: attracting attention, describing the character istics of the product, build trust and create a favorable impression of the prod uct. Labeled Labels can range from very simple, attached to the product, to complex graphics that are part of the package. The label may contain only the name of the mark or a wealth of information. The label has several functions: • Identify the product or brand. • Adjust the product. The label may describe th e product: who, where, when made, contents, etc.. •

Promote the product through attractive graphics. Price The amount of money charged for a product or service or the sum of all the value s that consumers exchange for the benefits of the product or service or use. A c ompany must make an initial price when developing a new product, when it introdu ces its product to a new distribution channel or geographical area or when tende ring for new contracts. The company must decide where to position your product in quality and price. Seg ment Example Special Deluxe Ultimate Dorado Middle Ease / Comfort + cheap imitat ion, but only price Example (Cars) Rolls-Royce Mercedes-Benz Audi Ford Hyundai K ia Volvo Buick Internal and external factors affecting pricing Internal factors Marketing Strategy Objectives Mkt mixture of External Cost Cons iderations organizational nature of the market and demand factors Environmental Competition (economy, resale, government) Decisions for pricing Establishment of pricing policies Selecting the pricing objective To determine the estimated costs Select the final price Choose a pricing method Analyze costs, prices and offerings of competitors Establishment of price-quality Price Highest Quality Without Premium Strategy Strategy overcharging Lowest value stra tegy a good economic strategy Quality With Quality Discount Rates Quantity discount is a price reduction to buyers who buy large volumes of mercha ndise. Cash discount is a price reduction to buyers who pay their bills on time. Discounts are functional where a manufacturer offers to members of the business if they perform certain functions such as sales, warehousing and accounting. Seasonal discounts is a price reduction is made to buyers who purchase goods or services out of season. Add extra payments are designed to enable dealers participate in special program s. 7 Commandments of Discount Not offer discounts that others do so. You will be creative with your discounts. You will make use of discounts to clear inventory or generate additional veins. You will put time limits on sales. You can be sure that whoever receives the di scount is the final customer. Deducted only to survive in a mature market. Disco unting will stop as soon as possible. Distribution Channels

A set of interdependent organizations involved in the process of making a produc t or service available for use or consumption. Channel Level A layer of intermediaries who perform some work to bring the produ ct closer to the consumer. Direct marketing channel there is no middleman. Indirect marketing channels includes one or more tiers of intermediaries. Customer Marketing Channel Channel 1 Channel 2 Channel 3 Channel 4 Manufacturer Manufacturer Manufacturer M anufacturer Wholesaler Wholesaler Retailer Retailer Retailer Broker Consumer Con sumer Consumer Consumer Channel 1 = no intermediate levels of Channel 2 = has an intermediate level of C hannel 3 = includes two levels of intermediaries Channel 4 = has three levels of intermediaries Business Channel Marketing Channel 1 Manufacturer Distributor Manufacturer Representatives business or bran ch of Representatives of the manufacturer or sales branch sales business Client Business Client Channel 2 Manufacturer Channel 3 Manufacturer Dealer Business Business Customer Channel 4 Manufacturer Dealer Business Business Customer Types of distribution Intensive distribution have the product in existence in many locations as possib le. Exclusive distribution given to a limited number of dealers the exclusive ri ght to distribute the products. Selective Distribution Using more than one, but unless all the intermediaries wh o are willing to have in stock the products of a company. Retail Sales All activities involved in selling goods or services directly to final consumers for personal use and not business. Retail Business whose sales come primarily f rom retailing. Retail Stores Specialty store has in stock a limited product line, with a wide variety within that line. Department stores have in stock a wide variety of products, clothes, furniture ...

Supermarkets Supermarkets large, low cost and high volume, they have in stock a wide variety of products. Shop convenience store located near a small Megastore residential area, which is twice the size shop open long hours supermarket regular 7 days a week selling. wide variety of products. Stores large hypermarkets which are a combination of s upermarket, discount store and retail store. Wholesale All activities involved in selling goods and services to those who buy for resal e. Types of Searches Business Wholesale independently owned retailers that are responsible for the go ods they handle. Wholesale broker whose role is to unite buyers with sellers and helping them in their negotiations. Agent A wholesaler who represents buyers or sellers on a relatively stable, not responsible for the goods. Decisions of the wholesaler MKT MKT Mixed Variety of wholesale prod. and serv. Rates Special Place (location) Target market strategy wholesale Positioning Service Promotion Refers to activities that communicate the attributes of the product and persuade customers to purchase. Promotional Mix It consists of a specific combination of instruments of advertising, personal se lling, advertising, sales promotion staff and public relations a company uses to achieve their advertising and marketing objectives. Advertising Any paid form of personal communication which identifies the sponsor or the comp any. Personal Selling The staff presentation is the strength of sales of the company in order to make sales and develop customer relationships. Sales Promotion Short-term incentives to encourage the purchase or sale of a product or service. Public relations Creating positive relationships with the company's various publics by obtaining favorable publicity, building a positive corporate advertising and the handling or disposal of rumors, stories and adverse events of the company. Promotional mix strategies Push strategy pull strategy Push strategy Mkt activities of the producer (VTA staff, sales promotion, Producer Retailers a nd others). mkt wholesale reseller Activities (VTA staff, advertising, promotion vtas).

Consumer Pull strategy Retailers and wholesalers Producer Demand Consumer Demand Marketing activities of the producer (consumer-oriented advertising, sales promo tion, etc.). Personal Selling Seller Individual acting on behalf of a company, performing one or more functions such as: Search Communicate Give potential customers gather information services Steps in the sales process The steps taken by the seller when a sale, including: search and qualification o f potential customers prior Approach Approach Management Presentation and demons tration of objections, closing and monitoring. Search Leads Passage in the selling process in which the seller identifies quali fied potential customers prior Approach Step in the process of sale where the se ller finds out all you can about a potential client before make a sales visit Approach The step in the process of sale where the seller knows and greets the b uyer to make the relationship a good start Presentation and demonstration The st ep in the process of sale where the seller to the buyer talks of "history "produ ct, showing the way in which the product will cause the buyer to obtain profits or save money Handling objections The step in the process of sale where the seller finds out w hat the customer objections to purchasing, clarifies and beats. Follow The last step in the sales process, in which the seller makes a follow-up after the sale to ensure customer satisfaction and repeat purchase Turn off in the process of sale where the seller requests the customer to make a n order Sales Promotion It consists of short-term incentives to encourage the purchase or sale of a prod uct or service. Sales promotions should build relationships with consumers. Sales promotion tools Test samples of a product are free. Stamp Certificates mean savings for consumer s when they buy certain products. Discounted cash refund or rebate to refund part of the purchase price of a produ ct. Package prices (minimum discount) reduced the producer price brand directly in t he label or packaging. Prizes A prize may come within the package or on the package. Advertising Specialties useful items imprinted with the name of an advertiser an d are given away to consumers. Rewards Cash prizes sponsored or otherwise, offered by the regular use of certai n products or services of the company. Promotions include point of purchase disp

lays and demonstrations that take place at the point of purchase or sale. Contests, lotteries and games promotional events that provide consumers the oppo rtunity to earn some (travel, property, cash, etc.).. Discount A direct reduction in price on purchases made during a specified period . Money promotional discount manufacturers pay to retailers who agree to offer s ome way a manufacturer's products. Advertising Any form of personal communication, paid, which identifies the sponsor or the co mpany. Popular form of promotion. Task specific communication objective that a c ampaign should achieve in a specific target market over a given period. Effects of advertising on consumers Advertising can: • Change the attitude of - a + • + • Strengthen the attitude Af fect the consumer perspective Maintain sales / Sales Construction participation / involvement Performance advertising costs (in sales or market share) Role of advertising response Money spent Advertising Rates Institutional (corporate) form of advertising designed to improve the image of a company. Input type of advertising designed to stimulate primary demand for a n ew product or product category. Product form of advertising that highlights the benefits of a good or service. Competitive type of advertising designed to influence the demand for a specific brand. Type Comparative advertising compares two or more competitive brands, sho wing them and naming them specifically in relation to one or more attributes. Advertising Campaign Series of interrelated ads that focus on a theme, slogan and set of common adver tisements. Creatives Reason why a person buys a product or service. Advertising messages trigger emot ions such as fear or love, need or desire, etc.. "AT LEAST WE ALL HAVE A JETTA IN THE HEAD" Implementation of message It allows utility or value to consumers whether the product will save them money or they will win. Love and romance are used to sell cosmetics and perfumes. Health attracts those concerned with their body or willing to be healthy. Fear is focused on social unrest, aging or loss of health. Requires care in impl ementation. Admiration is used celebrities to send the message. Fun and leisure vacation packages, beer, amusement parks, etc.

Convenience (comfort) is often used for fast food or microwave food. Vanity and selfishness expensive or conspicuous items. Environmental awareness i s focused on protecting the environment. Media advertising Channel used to transmit a message to a target market. Planning means that adver tisers make decisions for the selection and use of media, allowing the marketer to communicate your message to the target audience in an optimum and cost effici ent. Types of advertising media Medium Advantages Disadvantages Selection and geographical flexibility, commitments Low short-term public select ion, value and demographic information immediacy color capabilities of readers t hroughout the year, limited high, low coverage rate of the market to move to dif ferent individual, availability of hands can be expensive. cooperation and local connection, short notice. Good reproduction, color, and regional demographic ta rgeting, selection of local market advertising relatively long life, high rate o f sharing the medium. Advertiser commitments long term, slow accumulation of aud ience, limited display capabilities, long in advance. Newspaper Magazine Average Advantage Low cost, immediacy of the message can be scheduled on short notice, relatively unchanged in seasonal or temporary hearing, highly portable, involvement of the poster in the short term, carry training. Ability to reach wide audiences divers e, low cost per thousand, opportunities for creative demonstration, immediacy of the messages carrying entertainment, demographic selection of cable channels. Disadvantages Untreated visual€short message advertising life, high frequency is required to g enerate understanding and retention, create background noise distractions, comme rcial mixture. Short life of message, consumer skepticism, high cost, low demogr aphic targeting, advertiser commitments to long-term commercial mixture. Radio TV Average External Media Advantage Repeat, moderate cost, flexibility, demographic targeting. The fastest growing m edium, ability to reach a narrow target audience, relatively short lead time req uired for the creation of Web-based advertising, moderate cost. Disadvantages Short message, lack of demographic selection, high level of noise that distracts the audience. Difficult to measure ad effectiveness and return on research, ad exposure depends on the entry click ads or banner ad space, not all consumers have access to the network. Internet

Media Plan Description of media, publications or programs, and the dates of insertion of th e ads. There are three types of media plan. Plan continuum media programming strategy that used for products in the last sta ges of its life cycle and in which the advertising goes steadily throughout the period advertising. Tiered media plan media programming strategy in which increases the frequency of the ads that constantly go every other month or every two weeks, in order to ac hieve impact with greater frequency and scope during this period. Intermittent media plan media programming strategy that uses a continuous progra mming throughout the year, which intensified during the best periods of sales. Plan for temporary or seasonal means media programming strategy ads only happens during times of year it is more likely that the product is attached.