sport bars

Open both files you might need them his subject is about  “Sports bars (Buffalo Wild Wings, O’Kelley’s, The Cabin, Hunter’s) “

Answer this question in half a page

Identification and description of a minimum of at least two benefit (need-based) segments in your category. Indicate which competitors in the service category you believe to be best positioned to satisfy each segment and which are in the worst position. Give rationale for your choices.

MKT

305

NEEDS COURSE PACKET

Strategic Framework of the Customer Buying Process

Stage

Key Customer Concept

Marketing Objective

Affected marketing activities

1

needs

Create Value
Produce solutions that meets the needs of a segment of customers better than the competition

Product/service development*
Pricing
Benefit segmentation

2

perceptions

and attitudes

Sell Value
Get targeted customers to perceive that your solution meets their needs better than the competitions ’solutions

Promotion*
Packaging
Pricing
Branding
Positioning

3

purchase

Deliver Value
Acquire orders from customers and fulfill these orders to the customer’s satisfaction

.

Distribution*

Pricing*
Customer Service

* most important activity

OUTLINE:

A. Needs Vs. Wants

B. The Motivational Process

1. Motivational Problems

2. Motivational energy vs. Motivational direction

C. Motivation Behind Market Choice

1.

Two Levels of Market Choices

:

2. Four Values Driving Choice

D. Benefit Segmentation

E. Measuring Customer Needs

F. Perceived Risk

1. Types Of Perceived Risk

2. How Customers Deal With Perceived Risk

G.

Manifest

vs. Latent (Covert & Hidden) Motives

NEEDS DISCUSSION QUESTIONS:

1. What motivates people to smoke cigarettes? Why would someone who is aware of its undesirable consequences begin smoking in the first place?

2. What is the distinction between needs and wants? Can wants exist without needs? Can wants precede needs?

3. Can marketers create needs? Can marketers create wants? What is the appropriate role of marketing with regard to customer needs and wants?

4. What are the motivational problems that keep customers out of the market for a particular product or service? How can marketers address each of these issues?

5. What is the distinction between motivational energy and motivational direction? What are the implications of each?

6. Analyze motivations for why people smoke cigarettes using the motivation behind market choice framework. Do the same for bowling.

7. Does emotional value ever drive the purchase behavior of industrial (B to B) buyers? How? What about social value?

8. What is benefit segmentation? How does it differ from traditional segmentation approaches? What are its advantages? What are its disadvantages?

9. What are the requirements of a good benefit segment?

10. How do manifest motives differ from latent motives? How do covert motives differ from hidden motives?

11. Is perceived risk a positive or a negative for marketers? Is it more of an opportunity or a threat? Explain.

12. What strategies do customers use to help alleviate perceived risk? How is this relevant to marketers?

“Oil company advertising has led people to the conclusion that more expensive (higher grade) fuels will make their cars easier to start, get more gas mileage, and last longer but this is generally untrue…your engine has to be designed to use that extra octane…the extra cost is just lining the pockets of the oil companies”

Michael Solomon, Customer Behavior,

p. 92

The Appropriate Role of MARKETING WITH REGARD TO NEEDS AND WANTS

Create wants, i.e., satisfy the needs of one or more segments of customers better than anyone else.

Key points

1. Be “need”

no

t product focused

examples: Smith Corona, American Trap Co., Blockbuster

2. Insufficient “just” to satisfy needs

example: Swiffer, Grill Glove

3. Satisfy all their needs

example: Diet Beer

4. Do not attempt to satisfy everyone with one solution.

example: Egg McMuffin, Curves

A Better Mousetrap

“If a man can write a better book, preach a better sermon, or make a better mousetrap than his neighbor, though he builds his house in the woods the world will make a beaten path to his door.

Chester M. Woolworth (

https://www.loc.gov/item/2017840634/

), when he was president and chairman of Animal Trap Co. (

https://www.woodstream.com/heritage

)of America, commissioned an industrial designer to come up with an even better mousetrap. The finished product was a sleek, brown plastic gadget that looked something like an upside-down bathtub. It had a spring that snapped upward and strangled the mouse when it nibbled the cheese (or peanut butter or gumdrops, said by some to be the preference of discerning mice). The trap was big enough to conceal a good-sized mouse (except for the tip of its tail, which hung out), so that the squeamish householder need never lay e

yes

on the victim. And perhaps best of all, the trap was reusable — press down on the spring from the top and neatly drop the mouse into the garbage pail.

But the Little Champ, as it was affectionately named, gathered dust on the shelves of hardware stores while the tried-and-true snap-trap continued to snag customers. Why? In a 1962 publication of the American Management Associations, Woolworth mused over the plight of the Little Champ and admitted that “we’re still not sure. Perhaps it didn’t look like a mousetrap. Maybe it was priced wrong. The old traps cost about $.07 [the Little Champ sold for about $.12].

Maybe it was the disposal feature. Many women just throw away the $.07 trap — with the mouse in it.”

Indeed, this last guess proved to be the answer. More recent market research shows that “the homeowner will, often as not, throw the trap out with the rodent even though it could be used over again,” says John Reid. In which case, the old Victor snap-trap suited the customer’s purposes just fine — it was cheap, it was simple, and it didn’t look like a designer mousetrap, so

no

one felt any qualms about tossing it out.

http://www.inc.com/magazine/19850301/1091.html

MOTIVATION

The driving force within individuals that impels them to take action in order to satisfy a need.

MOTIVATIONAL PROCESS MODEL

1. Unfilled need

↓

2. Awareness of unfilled need

↓

3. Tension

↓

4. Action

↓

Customer Motivation Problems –

Why customers do not take action to fill their needs – i.e. why they stay out of markets.

1. Customer forgets about their need.

Strategy – Remind customers of their need

examples: Hallmark, Dentists, Jet Dry, Car Fax

2. Customer lacks the motivation to fill their need.

Strategy – Increase Customer Tension

examples: Ziebart, Scope, Orkin, Allstate

3. Customer is not aware of an effective solution to their need.

Strategy –Develop an effective solution for customers

examples: Wrigleys, Arm & Hammer, Excedrin Migraine

COMPARISON OF THE TWO COMPONENTS OF MOTIVATION: ENERGY VS. DIRECTION

Motivational energy	Motivational direction
	Definition	The extent to which the customer is motivated to take action to fill their need.	The action(s) the customer takes to fill their need
Source of motivation	related to need strength	related to wants
Demand type	Primary demand	Secondary demand
Indication this component is the problem	Customer fails to take action, does not enter your market	Customer buys from your competitor rather than you

.

MOTIVATION BEHIND MARKET CHOICE FRAMEWORK

Two Levels of Market Choices

1. THE PURCHASE DECISION

things that motivate someone to make a purchase in a particular category.

Example: deciding to buy a smart phone.

2. THE CHOICE DECISION

things that motivate one’s purchase choice within a category.

Example: deciding to buy an Apple I-phone rather than a Samsung Galaxy.

MOTIVATION BEHIND MARKET CHOICE FRAMEWORK

Four Consumption Values

1. UTILITARIAN VALUE

the ability of an alternative to provide functional benefits.

Examples: appliances (purchase); horsepower and fuel economy of a car (car choice)

2. SOCIAL VALUE

The ability of an alternative to affect one’s social image.

Examples: jewelery (purchase); luxury brand (car choice)

3. EMOTIONAL VALUE

The ability of an alternative to elicit positive feelings

Examples: music (purchase); design aesthetics (car choice)

4. EPISTEMIC VALUE

The ability of an alternative to provide novelty, or satisfy curiosity.

Examples: online content (purchase); innovative new technology in a car (car choice)

Don’t Underestimate the Role of Emotion, Self-Image in B2B Sales

B2C sales and marketing entities have long recognized the need to connect the brand with the customer’s ego and sense of self. If you can cultivate a brand or specific product that makes customers feel better about themselves, the battle for the purchase decision is practically won (and price sensitivity is greatly reduced)! Brands like Starbucks® and Apple® are champions at this.

In contrast, the role of customer ego has historically been overlooked in B2B sales, in favor of the business benefits of our solution – most often some combination of improved growth, profitability and efficiency – delivered to the customer organization. Certainly, these are key considerations for B2B sales, but to overlook the emotional needs of individual purchase decision makers is to miss key opportunities for sales advantage and differentiation.

Next time you are mapping out the Features, Advantages and Benefits of your product/service for a client organization, take the time to run through the same process relative to your key contact’s personal benefit. How will this purchase make his/her life easier or make this individual look good to his/her boss and peers? How might this purchase make the individual customer feel smarter, cooler or more successful? What might this purchase decision say about his/her level of sophistication, relevance or thought leadership?

 

Taking extra time and thought to add this personal dimension to your solution will help you build personal relationships and cultivate advocates within the client organization. And with purchase committees becoming more and more common, cultivating fans within the client organization has become more essential to our sales success. At the end of the day, companies don’t buy products and services; people do. We’ve all heard that familiar saying, now we just need to start living it!

 

BENEFIT SEGMENTATION

Grouping customers into segments based on similarity in benefits sought

Definition

Benefit Segmentation	Traditional segmentation
Grouping customers into segments based on common benefits sought Example: Tide vs. Cheer	Grouping customers into segments based on common background characteristics such as demographics
Strengths	Provides strong focus for developing products/services and message strategy Examples: Toyota Health clubs	Makes it easier to select media to reach the segment
Weaknesses	1. May not be able to come up with a good demographic profile for the segment Example: black licorice 2. A few markets do not require customers to make tradeoffs Example: toothpaste https://www.youtube.com/watch?v=z-o_LI8-5oY	Customers in the same segment may have conflicting needs Example: GMC Syclone targeted to young male

REQUIREMENTS OF A GOOD NEED BASED SEGMENT

1. Segment defined by benefit sought not by buyer characteristics or product type/characteristics.

Example: mowers that mow lawns quickly (wide cutting decks) or mowers you do not have to push vs. men 25-34 or lawn tractors

2. Benefit sought must be a major factor (trigger) for some group of buyers.

Example: easy starting push mowers vs. push mowers with cup holders

3. Segment must be large enough to be worth targeting

Example: lawn tractors for tight, heavily treed lawns (zero radius) vs. lawn tractors for bored mowers (equipped with entertainment systems)

4. Benefit sought should be a potential source of competitive advantage (i.e. something most competitors cannot provide).

Example: rechargeable plug-in lawn tractors vs. lawn tractors with automatic transmission

Which of the following are legitimate need-based segments for supermarket coffee?

1. Males 25-34

2. Young urban professionals

3. Price-conscious drinkers

4. Energy seekers

5. College students

6. Quality coffee connoisseurs

7. Fast preparation time seekers

8. Hazelnut flavored coffee lovers

9. Families

10. Office workers

11. Coffee drinkers without a coffee maker

12. Late shift workers

13. K-cups

14. Small pot/batch coffee drinkers

15. Portable/Ready-to-drink hot coffee drinkers

16. Folger’s brand loyals

MEASURING CUSTOMER NEEDS

Attribute Importance: Have respondents indicate how important different attributes are to them when evaluating different competitors.

Example: fast food hamburger restaurants:

very very

unimportant important

Taste of food 1 2 3 4 5 6 7

Price

1 2 3 4 5 6 7

Speed of service 1 2 3 4 5 6 7

Menu variety 1 2 3 4 5 6 7

Location 1 2 3 4 5 6 7

3 TYPES OF CUSTOMER MOTIVES

yes

yes

no

Type of motive	Customers know their true motivation?	Customers will tell you their true motivation?
Manifest			yes
Latent: covert	no
Latent: hidden		no

PERCEIVED RISK:

Risk = probability x cost

Undesirable Consequences Customers Seek To

Avoid When Making Purchase Decisions

TYPES OF PERCEIVED RISK:

1. Social Risk:

risk that a wrong choice will result in embarrassment or disapproval from others

examples: horse racing, clothing, store brands

2. Performance Risk:

risk that a wrong choice will not perform as well as expected

examples: bleach, pain relievers, logistics, fruit

3. Financial Risk:

risk that a wrong choice will be overpriced or lead to negative financial consequences.

examples: used cars, retailing, houses

4. Physiological Risk:

risk that a wrong choice may cause physical harm

examples: Volvo, chain saws, laser eye surgery

HIGH OR LOW PERCEIVED RISK PURCHASES?

1. Cell Phone

2. Paper Towels

3. Flour

4. Car

5. Shoes

6. Jeans

7. Socks

8. Milk

9. Chainsaw

10. Oil Change

Sample Questions needs vs. wants

1. Which of the following is correct.

a. Needs are defined as requirements that people must have in order to survive.

b. Wants are defined as things a person desires but does not need.

c. A person cannot want a product unless it addresses their needs.

d. a and b

2. A person wishes to go to Taco Bell in order to relieve their hunger. In this scenario ________ represents the person’s need and _________ represents the person’s want.

a. Taco Bell/hunger

b. hunger/Taco Bell

c. hunger/hunger

d. Taco/Bell/Taco Bell

Sample questions: motivational process

1. Which of the following is correct regarding the motivational process model presented in class?

a. The first stage is “tension”

b. the action stage leads to the tension stage

c. the tension stage leads to the action stage

d. the need stage leads to the tension stage

e. the final stage is “awareness of a need”

2. According to class discussion on the motivational process model, what strategy is most appropriate for a company who has an innovative and effective new solution for a problem that is of great concern to customers?

a. create a need

b. remind customers of their need

c. increase customer tension

d. suggest an action customers can take

Sample Question: Motivational energy vs. motivational direction

Which of the following reasons why someone does not purchase Coppertone sunscreen would be attributed to “motivational direction” rather than to “motivational energy”.

a. He is unaware of the dangers of the sun and how sunscreen can protect his skin from damage.

b. He is aware of the dangers of the sun but he never thinks about buying sunscreen when he is shopping.

c. He is aware of the dangers of the sun but is not concerned enough to buy sun screen.

d. He is concerned about protecting his skin from sun damage but he always buys Banana Boat.

Sample questions: consumption values

1. A customer chooses to go to the Horseshoe Lounge because he thinks it is the best place in town to meet new people. Which consumption value motivated this customer’s choice of bar?

a. utilitarian value

b. social value

c. emotional value

d. epistemic value

2. A customer chooses to join the local chapter of the Rotary Club because he thinks this membership will help communicate to others that he is someone who is involved in the community. Which consumption value motivated this decision?

a. utilitarian value
b. social value
c. emotional value

d. epistemic value

3. A customer decides to go on an Alaskan Cruise in order to experience what life is like that far north and to see what whales and glaciers really look like in person. Which consumption value motivated this decision?

a. utilitarian value
b. social value
c. emotional value
d. epistemic value

4. A customer decides to go to the Lowes to buy a refrigerator because he wants to support the sponsor of his favorite race car driver Jimmy Johnson. Which consumption value motivated this decision?

a. utilitarian value
b. social value

c. emotional value.

d. epistemic value

1. A customer decides to buy the Braun blender they want from Wal-Mart because the store’s price match guarantee assures them that if they see the same blender at another store for a lower price within two weeks of purchase, Wal-Mart will give them a refund for the price difference. This customer’s decision to buy from Wal-Mart was due to their desire to deal with which type of perceived risk?

a. social risk

b. performance risk

c. financial risk

d. physiological risk

2. A customer decides to buy a plain white Toyota Camry because they do not want to drive an attention- getting vehicle that might attract the awareness of potential carjackers or the police. This customer’s purchase choice was due to their desire to deal with which type of perceived risk?

a. social risk
b. performance risk
c. financial risk
d. physiological risk

3. A customer needs to rent, sight unseen, a beach villa in Myrtle Beach for a week of vacation. She ended up renting a moderately priced villa because she was afraid the less expensive units that were available might be in poor condition. This customer’s purchase choice was due to their desire to deal with which type of perceived risk?

a. social risk
b. performance risk
c. financial risk
d. physiological risk

4. A customer who has never tanned before because they find tanning salons to be intimidating, selects to use a particular local salon because they offer a free 30 minute orientation session on tanning etiquette and how to properly use the salon’s facilities. This customer’s purchase choice was due to their desire to deal with which type of perceived risk?

a. social risk
b. performance risk
c. financial risk
d. physiological risk

18

MKT305 – Hoyle

Spring 2020

GUIDELINES FOR THE CUSTOMER RESEARCH PROJECT SUBMISSION 1:

Brainstorming/conceptual analysis

One of the requirements for MKT 305 is the completion of a customer research project that will account for 25% of a student’s final grade. This project has two submissions. Submission 1 will be a brainstorming/conceptual analysis. This portion of the project is worth 30% of the project grade or 7.5% of a student’s final grade. The primary objective of this submission is for groups to use conceptual frameworks discussed in class to analyze and evaluate buyer behavior among CMU students within a selected local service category.

CATEGORY SELECTION

Each group will be assigned to a specific service category to research from those listed in Exhibit 1 of this document. Groups will perform research on the same category for both submission 1 and submission 2.

BRAINSTORMING/CONCEPTUAL ANALYSIS

In this submission you are to use several of the theoretical frameworks covered in class to analyze choice behavior in your service category. Your analysis must include the following:

1.
An analysis of the consumption values that the competitors/brands in your service category serve using the Motivation Behind Market Choice Framework discussed in class. Examine
both
the
purchase decision
as well as the
choice decision
separately using the four consumption values discussed in class (functional, social, emotional and epistemic value). Identify all possible motivations under each consumption value
for both the purchase and the choice decisions.

2.
Identification and description of a minimum of at least four benefit (need-based) segments in your category. Indicate which competitors in the service category you believe to be best positioned to satisfy each segment and which are in the worst position. Give rationale for your choices.

3.
An analysis of perceived risks that could potentially affect choice in your service category organized using the four types of perceived risk discussed in class. For each risk you identify, describe actual or potential strategies that might be used by competitors (not customers) in the service category to alleviate customer concerns about these issues.

DELIVERABLES

A printed hard copy of the analyses detailed above is due
Tuesday 2/25, by the end of class
. This part of the project requires groups to write up the required brainstorming/conceptual analyses (consumption value analyses, perceived risks, and benefit segments) plus any additional conceptual analyses they may wish to submit.

GRADING

No group member will receive a grade for the written report higher than that given to the group. In order to help insure satisfactory participation by all, a group member evaluation form will be collected at the end of the term (after Submission 2 is submitted). Those students consistently rated as poor performers by others in their group will have their project grades reduced according to the severity and consistency of the negative ratings. Submission 1 will be graded based on the depth (level of description and detail), breadth (number of relevant items identified) and thoroughness of the analysis (were important items omitted), the quality of the presentation (writing, organization GSP, aesthetics) and the correctness of the application of buyer behavior concepts (were terms used correctly, were items classified in the correct category). Submissions begin with a default grade of B which can then be raised (or lowered) based on the extent to which the paper distinguishes itself from the pack and establishes itself as better (or worse) than the average submission based on the criteria above. Attached is the grading rubric.

EXHIBIT 1:

List of Eligible Service Categories to Research

1.
Sub/sandwich shops (Subway, Jimmy John’s, Which Wich, Firehouse, Panera)

2.
Groceries (Aldi, Wal-Mart, Target, Rics, Meijer)

3.
Full service (sit-down) dinner restaurants (Applebees, Texas Roadhouse, Bennigans, Olive Garden, Ruby Tuesday’s, Mountain Town)

4.
Ice cream (Dairy Queen, Culvers, Doozies, Pineapple Tiki)

5.
Coffee houses (Starbucks, Bigby, Ponder, Java City)

6.
Pizza delivery (Domino’s, Jet’s, Hungry Howies, Papa John’s, Vin Trofeos)

7.
Sports bars (Buffalo Wild Wings, O’Kelley’s, The Cabin, Hunter’s)

8.
Mexican food quick-service (Qdoba, Taco Bell, Taco Boy, Chipotle)

MKT 305 Submission 1 Rubric

●Depth (level of description and detail: quality of rationale)

●Breadth (number of relevant motivations identified; did not overlook key factors)

●Presentation (writing, organization, GSP, aesthetics)

●Correct application of buyer behavior concepts (terms used correctly, motivations classified in correct category).

Comments:

	Grading criteria		Does Not Meet Expectations		Meets Expectations		Exceeds Expectations
1. Consumption Values- Purchase decision
			●Depth (level of description and detail: quality of rationale)
	●Breadth (number of relevant motivations identified; did not overlook key factors)
			●Presentation (writing, organization, GSP, aesthetics)
	●Correct application of buyer behavior concepts (terms used correctly, motivations classified in correct category).
			Comments:
	Letter Grade for this analysis:
2. Consumption Values- Choice decision
	Letter Grade for this analysis:

Grading criteria

Does Not Meet Expectations

Meets Expectations

Exceeds Expectations

●Depth (level of description and detail: quality of rationale)

●Presentation (writing, organization, GSP, aesthetics)

Comments:

Letter Grade for this analysis:

●Depth (level of description and detail: quality of rationale)

●Presentation (writing, organization, GSP, aesthetics)

Comments:

Letter Grade for this analysis:

3. Benefit (need-based) Segments

●Breadth (number of relevant segments identified; did not overlook key segments; identified best worst positioned competitor in each segment identified)

●Correct application of buyer behavior concepts (terms used correctly, segments identified are legitimate need-based).

4. Perceived Risks

●Breadth (number of relevant risks identified; did not overlook key risks, identified risk alleviation strategies)

●Correct application of buyer behavior concepts (terms used correctly, risks classified in correct category).

Overall % Grade for Submission 1: