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Question 1: Individual Consumers & Organizational Buyers 1. Classifying the Buying Situation: B2C or B2B? I believe purchasing a fitness app to promote the wellness of company employees is a B2B (business-to-business) buying situation. This is because the organization (the buyer) is making the purchase decision on behalf of its employees (the end-users) to promote better health outcomes as part of the organization's wellness program, not the employees purchasing the fitness app for themselves. B2B transactions involve one business buying products or services from another business ( The Business Buying Decision Process: Boundless Marketing, n.d.), and in this case, the organization is acting as the buyer. There are a few characteristics as to why this scenario best fits the B2B buying context. (1) In a B2C buying context, a single consumer typically makes a purchase decision for their gain, but in this scenario, the organization is buying subscriptions for every employee, which means there are multiple end-users within the organization. (2) The primary purpose of purchasing a fitness app subscription is to promote better health outcomes among employees as part of the organization's wellness program. This goal is aligned with the organizational and financial objectives rather than individual consumer preferences, which is a characteristic of B2B buying ( The Business Buying Decision Process: Boundless Marketing, n.d.). Ultimately, the B2B buying context best fits this scenario because it involves an organization deciding to purchase something that will ultimately benefit its employees and align with its organizational goals. 2. Low-Involvement v. High-Involvement Purchase Decision I would consider this scenario a high-involvement purchase decision, for various reasons. High-involvement decisions carry a high risk to their buyers if they fail, are complex, or are
expensive ( Chapter 3 Consumer Behavior: How People Make Buying Decisions, Section 3.2 , 2012). One reason this scenario is a high-involvement purchase decision is that it directly affects the well-being and health of employees, which is a critical aspect of the organization's wellness program and may have long-term implications for the company's overall health and productivity. Therefore, the company is likely to invest time and effort in evaluating and selecting the right fitness app. Second is the long-term commitment when purchasing an app. Assuming that the organization intends to commit to the fitness app for an extended period, this anticipates ongoing support and updates, as well as whatever membership cost is associated with the longevity of an app. Lastly, if the organization aims to motivate employee usage of the fitness app through incentives, challenges, or rewards, it becomes a high-involvement decision. This is because encouraging and monitoring employee participation requires ongoing effort and attention. In conclusion, purchasing a fitness app for all employees to enjoy is easily considered a high- involvement purchase because choosing to make a purchasing decision this large reflects the effort and long-term commitment made by the company, which is associated with great risk. 3. Limited Problem Solving v. Extended Problem Solving Purchasing a subscription to a fitness app is a scenario that is a high-involvement purchasing decision, so, I believe this purchase would be considered an extended problem- solving decision, as the two tie hand-in-hand with one another. High-involvement decisions carry high risk and high price which leads to extended problem-solving decisions being made when a lot of time is spent comparing different aspects, such as features, prices, and warranties ( Chapter 3 Consumer Behavior: How People Make Buying Decisions, Section 3.2 , 2012). I believe the decision to purchase an app subscription is an extended problem-solving decision for various
reasons. One reason is the complexity of making and coming to this decision; purchasing an app subscription involves multiple factors and considerations, such as the choice of the fitness app itself, cost analysis, integration with existing wellness initiatives, compatibility with various devices and operating systems, and ensuring it meets the diverse needs and preferences of employees, which make it more than just a routine decision. Another reason is the time it took to gather all this information; to make the correct decision, the company must gather information about available fitness apps and examine their features, pricing structures, user reviews, and compatibility with the organization's goals. This research and data collection is extremely time- consuming, which is quite the opposite of what one would do when making a decision using a limited problem-solving tool. Lastly, the company’s decision-making process in choosing to purchase a subscription for an app would involve lots of discussion, meetings, and potentially the creation of a team to assess the options thoroughly, and would possibly require approval from higher-ups or executives. The purchase of a fitness app subscription for every employee is not a simple, straightforward decision but rather a complex process that requires careful consideration, information gathering, and ongoing management, therefore, it falls within the realm of extended problem-solving. 4. Compare and Contrast I classified this scenario as a B2B buying situation, which I believe is closely related to the Business Buying Decision Process (n.d.). Both frameworks have various similarities because they both are systematic approaches to evaluating options, making decisions, and managing relationships ( The Business Buying Decision Process: Boundless Marketing, n.d.). One large similarity between both frameworks is the information gathering that happens when practicing
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each approach; B2B buyers and the decision-making process both involve the gathering of information and lots of it. In both approaches, there is research on potential suppliers or partners, gathering of data and information about products, services, and solutions that can address their needs or challenges. Another similarity is the long-term implications associated with each process. B2B buyers think about the long-term relationship with a supplier and how the decision benefits those at stake, and in the business buying decision process, the company considers how the purchase will impact its operations and strategic objectives over time. While each process has different priorities, they are both still focused on what the long-term effects of a purchase will be. Lastly, after a decision is made, both processes go through a phase of evaluation after the purchase is made. This evaluation assesses whether the purchase that was made meets the expectations of their stakeholders and business, as well as any improvements that can be made. The B2B buying situation differs from the Classic Consumer’s Purchasing Decision Process (2012) due to several factors related to the complexity, detail, and nature of the B2B purchases. A large difference between both frameworks is the process of decision-making; B2B purchases are driven by various criteria, including cost-effectiveness, long-term value, and alignment with business objectives whereas the classic consumer purchasing decision process typically involves purchases that are influenced by personal preferences, emotions, and individual needs and desires. Another difference is the length of the decision-making process; the B2B buying process is typically longer and more complex as there are various stages in coming to a purchase decision, such as problem identification, information gathering, vendor evaluation, negotiations, and implementation, whereas the classic consumer’s purchasing decision process is relatively quick as these purchase decisions are made on impulse and/or immediate need ( Chapter 3 Consumer Behavior: How People Make Buying Decisions, Section 3.2 , 2012).
Question 2: Data Analysis, Technology, & Market Segmentation a. What are Market Segmentation Techniques? Market segmentation techniques are strategies and methods used by marketers to divide a broad target market into smaller, more manageable segments based on shared characteristics, needs, behaviors, or other relevant criteria. This enables marketers to better understand and reach their target audience, tailor their marketing efforts, and create more effective and personalized marketing campaigns (Wang, 2022). There are a few market segmentation techniques that come to mind when thinking of this question. For example, demographic segmentation; this segment divides the market based on demographic factors such as age, gender, income, education, marital status, and occupation. This segment is extremely valuable because it helps marketers understand the basic characteristics of their target customers and design products that align with these characteristics (Thomas, 1980). Another common segmentation technique is geographic segmentation; this segmentation divides the market into geographical regions, such as cities, states, and countries. This segment is very important as it allows businesses to create location- specific offers to cater to local preferences and needs (Thomas, 1980). Lastly, another common and important market segmentation technique is occasion-based segmentation; this segment divides the market based on specific occasions or events when customers are more likely to make a purchase, such as seasonal promotions and holiday-themed marketing (Thomas, 1980). Market segmentation techniques are generally useful to markets for various reasons. For example, targeted marketing is important and helpful because by dividing the market into smaller segments, marketers can create tailored marketing campaigns that are more likely to resonate with specific customer groups. Market segmentation is also useful to marketers because it allows
businesses to improve and tailor their products based on customer reviews, and ultimately, meet the unique needs and preferences of each segment group. b. Who are Gen N and what are their characteristics? According to Brian Solis, Generation N is a new and unusual customer segment, that is cross-generational, tied by similar digital behaviors, with evolving expectations, and desired experiences and outcomes. The tie that this generation has with one another is COVID-19, which is when this generation emerged. With a combination of staying home for months at a time, and the fear of contracting the virus, along with the confusion and frustration of the pandemic, generation N is a pandemic-born segment that will continue to thrive and grow for years to come. Ultimately, Generation N is driven by the pandemic and was forced to become digital-first because of the fear the pandemic brought upon us. Generation N finds importance in seeking brands with renovation and innovation, digital engagement, and ultimately, seeking companies that meet their needs and desires (Solis, 2020). c. What type of customers would not be members of Gen N? After reading about Generation N and what their different markers are, a few types of customers come to mind that I believe would not be a part of this market segment. For example, one of the first customers that come to mind are those of the baby-boomer generation, or older. While the pandemic forced those who were not familiar with technology to learn, there are many individuals of this generation who chose not to. From personal experience, many of my family members chose to make any purchases during the pandemic and relied heavily on their children or grandchildren to place digital orders for them, just because they did not feel there was a need
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to learn. This type of customer not only is of an older generation, but has the support of others who enable their ability to not have to learn, like members of Generation N had to. Another type of customer that would not be a member of Gen N is the disabled. While disabled customers have consumer needs of their own, they have individuals in their lives who make purchases for them, so similar to the older generations, there is no importance in having to go fully digital. Lastly, another customer that comes to mind is the low-income customer. The customer cannot afford computers and high-end technology that give them the ability to do research on different items and prioritize their needs and desires on luxury items (for a low-income family, simply the act of grocery delivery is seen as a luxury). d. How do the characteristics of Gen N impact marketing? The influence of Gen N on marketing is truly transformative, revolutionizing the landscape in countless ways. The standout characteristic of this generation is their unabashed embrace of all things digital. As a result, businesses across various industries have had to swiftly adapt to meet their tech-savvy demands. Notably, studies have underscored that a diverse range of generations, spanning from baby boomers to millennials, have wholeheartedly embraced contactless transactions, and leaving behind all traditional methods. This shift has compelled companies to craft marketing strategies that not only cater to but also celebrate the unique attributes of Generation N (Rossum, 2020). The once unconventional practices of Generation N have now become the norm within the market, prompting companies to realign their strategies accordingly. Walk into almost any store, and you'll find the convenience of Apple Pay and Google Pay at your fingertips, but the convenience doesn't end there. In this digital age, if the idea of venturing into a store doesn't appeal to you, the option to order your desired items online
and opt for curbside pick-up is readily available. In a groundbreaking move, Target recently unveiled its innovative curbside returns service, a first-of-its-kind offering. Instead of enduring the undesirable task of waiting in long lines, customers can now simply remain in the comfort of their cars while a Target employee seamlessly processes their returns right at the curbside. What's even more impressive, they even go the extra mile by delivering your mobile Starbucks order to your car (Coming to a target near you: Return a purchase without leaving your car , 2023)! This shift has triggered a pursuit by digital marketing executives to hone in on the preferences of Generation N, marking a pivotal moment where everyone is embracing these revolutionary practices with open arms. I believe the marketing world is electrified by the opportunities that this new era presents. e. Gen N Marketing Technique One marketing technique that has been and can continue to be successfully employed with Generation N marketers is influencer marketing. Influencer marketing involves collaborating with individuals who have a strong online presence and a dedicated following, leveraging their influence to promote products or services (Leung et al., 2022). For example, a cosmetics brand looking to target Gen N might partner with popular beauty influencers on platforms like Instagram and TikTok. These influencers can create engaging content such as makeup tutorials, product reviews, or daily beauty routines that feature the brand's products. Gen N, being highly engaged with online content and valuing authenticity, is more likely to trust recommendations from their favorite influencers rather than traditional advertisements. Marketers can also incorporate interactive elements into influencer campaigns. For instance, they might encourage influencers to host live Q&A sessions or polls to directly
engage with Gen N audiences, through Instagram or TikTok livestreams. This level of interactivity not only captures their attention but also provides an opportunity for real-time feedback and product insights. In summary, influencer marketing is a potent technique to connect with Gen N effectively. It leverages the influence of trusted individuals, incorporates interactive elements, and aligns with their values, ultimately creating a more authentic and engaging marketing experience. f. Will Gen N be a long-lasting marketing segment? Absolutely, I firmly believe that Generation N will continue to dominate the marketing landscape for the long haul, thanks to the proactive measures companies have already undertaken. The State of Connected Customer research proves this point, revealing that 88% of both business clients and consumers anticipate a rapid escalation in digital initiatives. This demand stems primarily from the evolving preferences of customers, with a significant portion belonging to Generation N, prompting companies to adopt an innovative approach in crafting digital alternatives to cater to their penchant for all things digital (Rossum, 2020). The astonishing growth of the e-commerce industry, which has accelerated by a decade within just the initial three months of the pandemic, along with the enduring appeal of digital transactions across all retail realms since the pandemic's emergence three years ago, serves as evidence that Generation N's influence is firmly rooted in our market and not going anywhere.
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Question 3: Insights from Marketing Research 1. ESRI Tapestry Segments (23.43%) Bright Young Professionals, (21.36%) Pleasantville, and (14.25%) Home Improvement ( Location Data: Globally Accurate & Authoritative Data, n.d.). a. What segment is most appropriate? The ideal target segment for this client is Pleasantville, a demographic marked by prosperous domesticity and often residing in older suburban homes. These couples, typically in the later stages of life, tend to remain in their homes, with some having become empty nesters while others still live with their adult children—mirroring the core customer the client seeks. They own older single-family homes and sustain their comfortable lifestyles through dual incomes, boasting an average median household income of $92,900. Their higher incomes, elevated home values, and substantial net worth underline their emphasis on home maintenance, sports, movie-watching, and shopping, both online and in various stores. This segment accounts for approximately 21.36% of the ZIP code, a notably sizable portion that aligns well with the characteristics the client desires, particularly within the Largo, MD area. b. Recommendation for Client's Business in This ZIP Code Area Certainly, I recommend including this ZIP code area, Largo, MD, in the client's geographical focus for their business, but not exclusively. Largo, MD does have a significant percentage of individuals who align with the client's desired target audience, resembling the characteristics found in Pleasantville . For instance, the median age in Pleasantville is 42.6, which falls within the desired range of 40-55-year-old couples. Moreover, the median household
income of $92,900 meets the requirement of an annual household income between $70,000 and $100,000. These Pleasantville residents are typically parents, either empty nesters or housing adult children, also fulfilling the client requirement. However, it's important to note that Pleasantville's demographic segment is not the majority in this ZIP code area; instead, Bright Young Professionals constitute the largest segment in Largo, MD. While this group dominates the area, it doesn't possess the qualities the client is seeking. Therefore, I suggest the client explore other ZIP code areas to tap into a broader and more extensive market while considering Largo, MD as an excellent starting point. c. Additional Insights about the Local Customer Upon reviewing the comprehensive description of the Pleasantville segment, I identified several qualities that could greatly benefit the client, going beyond their specific requirements. For instance, within the socioeconomic traits category, it's noted that residents of Pleasantville "favor classic and timeless fashion over trendy styles." Given that the client is planning to open a store specializing in high-quality refurbished kitchen appliances, this aligns well with the preference for enduring and top-notch kitchen pieces in Pleasantville . Furthermore, the observation that Pleasantville residents "are not particularly price-conscious; they prioritize quality and favored brands" presents an attractive prospect for the client. These consumers are willing to invest in quality, regardless of the price, which can be advantageous for the client's business. Lastly, the data revealing that this segment spends 32% more than the national average on apparel and services and 36% more on home-related expenses is especially valuable. It clearly indicates that this market segment is inclined to invest in top-name, refurbished kitchen appliances for their home improvement projects.
Question 4: Designing and Positioning Products & Services a. Three Product Levels for Tear-Proof Eyeliner Sealer In this section, I will discuss the three product levels for the Tear-Proof Eyeliner Sealer product I am developing for my marketing plan assignment. The first product level is the core product; this is the most basic level of a product and represents the fundamental benefit or problem-solving aspect that the product provides, addressing the core need or want of the customer (Week 6 Module, 2019). For a tear-proof eyeliner sealer, the core product is the functionality of the sealer itself. It offers the primary value of ensuring that eyeliner remains smudge-proof and tear-proof, allowing customers to maintain their desired eye makeup look throughout the day or in various conditions. It addresses the core customer need for makeup that withstands tears and moisture. The next product level is the augmented product; the augmented product includes additional features, services, or attributes that enhance the core product and exceed customer expectations (Week 6 Module, 2019). For the tear-proof eyeliner sealer, the augmented product elements include a sleek and attractive packaging design, with a few bonus items, such as an extra precision applicator and an instruction manual with QR codes that include videos on how to use the product. The last product level is the symbolic product; the symbolic product encompasses the benefits that a product provides and finds ways to differentiate itself from competitors (Week 6 Module, 2019). I imagine my product coming in sleek, black packaging, conveying a sense of luxury and sophistication. This symbolic aspect would help customers feel more confident, stylish, and on-trend when they use the product. It aligns with the idea that using this eyeliner sealant makes them look and feel their best, enhancing their overall image and self-esteem,
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allowing them to feel self-assured and ready to face any situation without worrying about makeup smudging. b. The Benefit of Understanding Product Levels As the marketing manager for a tear-proof eyeliner sealer, understanding the three product levels—core, augmented, and symbolic—would be instrumental in developing a comprehensive and effective marketing strategy. Firstly, recognizing the core product, which is the fundamental benefit of preventing eyeliner smudging, allows us to communicate this essential functionality clearly to potential customers which addresses their primary need for long-lasting makeup. Understanding the augmented product enables us to differentiate our eyeliner sealer from competitors by emphasizing additional features and benefits such as ease of application, hypoallergenic properties, or other unique selling points. This can help us attract a wider customer base by catering to various preferences and requirements within the cosmetics market. Most importantly, grasping the symbolic product aspect allows me to create a compelling brand image and emotional connection with the target audience. By aligning the product with feelings of confidence, elegance, and empowerment, I am better equipped to develop marketing campaigns and packaging designs that resonate on a deeper level, appealing to customers' aspirations and self-image. This can lead to brand loyalty and strong customer relationships, ultimately driving sales and market success. In essence, understanding the product levels equips us with the insights needed to position our tear-proof eyeliner sealer effectively and meet both the practical and emotional needs of future customers.
Resources A Bullseye View. (2023, February 28). Coming to a target near you: Return a purchase *without leaving your car* . Target Corporate. https://corporate.target.com/article/2023/02/drive- up-returns Chapter 3 Consumer Behavior: How People make buying decisions, Section 3.2. Consumer Behavior: How People Make Buying Decisions. (2012) . https://saylordotorg.github.io/text_principles-of-marketing-v2.0/s06-consumer- behavior-how-people-m.html Esri Software Segment: Bright Young Professionals chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://downloads.esri.com/ esri_content_doc/dbl/us/tapestry/segment35.pdf Esri Software Segment: Pleasantville chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://downloads.esri.com/ esri_content_doc/dbl/us/tapestry/segment7.pdf Leung, F. F., Gu, F. F., Li, Y., Zhang, J. Z., & Palmatier, R. W. (2022). Influencer marketing effectiveness. Journal of Marketing , 86 (6), 93–115. https://doi.org/10.1177/00222429221102889 Location Data: Globally Accurate & Authoritative Data. Location Data | Globally Accurate & Authoritative Data. (n.d.). https://www.esri.com/en-us/arcgis/products/data/overview? rsource=https%3A%2F%2Fwww.esri.com%2Fen-us%2Farcgis%2Fproducts %2Ftapestry-segmentation%2Fzip-lookup#data-demo&rsource=%2Fdata%2Fesri_data %2Fziptapestry Product Strategy . (2019). Document posted in University of Maryland Global Campus MRKT 600 online classroom, archived at http://learn.umgc.edu Rossum, B. V. (2020, November 16). Why the Emergence of Gen-N Amidst Pandemic Requires a New Kind of CMO. MarketPro. https://marketproinc.com/hiring-advice-2/2020/11/digital-marketing-executives-gen- n#:~:text=According%20to%20Brian%20Solis%2C%20a,experiences%20and %20outcomes.%E2%80%9D%20He%20calls The Business Buying Decision Process: Boundless Marketing . Course Sidekick. (n.d.).
https://www.coursesidekick.com/marketing/study-guides/boundless-marketing/the- business-buying-decision-process Thomas, J. W. (1980). Market segmentation. Quarterly Review of Marketing , 6 (1), 25-28. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https:// www.decisionanalyst.com/media/downloads/MarketSegmentation.pdf Solis, B. (2020, October 29). Meet Generation N: The Pandemic-influenced, connected customers driving the new digital imperative. Forbes. http://www.forbes.com/sites/briansolis/2020/10/29/meet-generation-n-the-hyper-aware- informed-and-connected-customers-driving-the-new-digital-imperative/? sh=b5fbf0c253b2 Wang, H.-J. (2022). Market Segmentation of Online Reviews: A Network Analysis Approach. International Journal of Market Research , 64 (5), 652–671. https://doi- org.ezproxy.umgc.edu/10.1177/14707853211059076
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