2. Distinguish between self-esteem and self-efficacy. Contrast high and low self-monitoring individuals, and describe resulting problems each may have. Explain the social learning model of self- management. Identify and describe the Big Five personality dimensions, specify which one is correlated most strongly with job performance, and describe the proactive personality. Explain the difference between an internal and external locus of control. Explain the concepts of emotional contagion and emotional labor, and identify the four components of emotional intelligence Appreciating Individual Differences: Self-Concept, Personality, Emotions Learning Objectives Chapter Five

3. If you are an Extravert, you prefer your energy to flow outwards, and your attention is naturally drawn to the outer world of action. Because you focus outwards, you tend to become talkative and you develop many different interests. Extraverts often think out loud. Picture of Extravert: enjoying coffee with friends; testing ideas through discussion. Analogy: rock skipping across a lake - touching many parts of the water, but none too deeply. Common Qualities of Extraverts: · Attracted to many different things · Like to talk, sometimes without thinking · Like to get involved, make it happen

4. If you are an Introvert, you prefer your energy to flow inwards, and your attention is naturally drawn to the inner world of understanding. Because you focus inwards, you tend to become more thoughtful, and your interests are deeper. Introverts tend to keep their thoughts to themselves. Picture of Introvert: thinking about something; making sure it "fits" before sharing with others. Analogy: rock tossed into a pond - hitting once and sinking deeply. Common Qualities of Introverts: · Attracted to in-depth analysis · Like to think, sometimes without talking · Like to understand

5. If you are a Sensor, you prefer to learn about your world through your five senses. Because you focus on what you can actually see or hear or touch, you develop a practical and realistic outlook on the world. Picture of Sensor: paying attention to details; reading the fine print in a contract. Analogy: magnifying glass - making sure of the details. Common Qualities of Sensing Types: · Notice Details · Practical - interested in WHETHER it will work · Tangible - like to have results · Predictable - when learning something new, like to start at the beginning and work through to the end · Pragmatic - stick to the tried and true

6. If you are an Intuitive, you prefer to go beyond your senses and focus on the meaning of the information. You are more future oriented; you see beyond the present (i.e., are insightful) and rather than being practical, you are more likely to be creative. Picture of Intuitive: looking upwards; seeking a broad perspective; wide angle vision. Analogy: binoculars - making sure of the "big picture." Common Qualities of Intuitive Types: · Notice the whole picture · Theoretical - interested in WHY it works · Creative - like to experiment

7. If you are a Thinker, you make decisions based on principles and logic. Because you treat everyone the same, you are fair and businesslike. You value justice. Thinkers ask these questions when deciding: "Is it logical? Can I support the decision in principle? Is it the RIGHT thing to do?" Picture of a Thinker: thinking about a decision; what is fair? Is this the right decision? Analogy: head versus the heart. Common Qualities of Thinking Types: · Appreciate analysis · Quick to give advice · Businesslike · Fair and just - same rules for all

8. If you are a Feeler, you make decisions based on how they will impact someone's life. Because you treat everyone individually, you are compassionate. You value mercy. Feelers ask these questions when deciding: "Do I feel OK about it? How will it affect someone else? Is it what I WANT to do?" Picture of a Feeler: two hearts; one caring for the other; sensitive to other's feelings. Analogy: heart versus the head. Common Qualities of Feeling Types: · Appreciate sensitivity · Quick to give support · Personable · Merciful - individual circumstances noted

9. If you are a Perceptive, you prefer to postpone decisions so more information can be found. Sometimes you actually delay something so you get an extra burst of "anxious" energy to help finish the job. Since you dislike deciding, you tend to become very adaptable. Picture of a Perceptive: a two-way road sign indicates flexibility; able to change directions. Analogy: starting the race as opposed to finishing it. At the start, anything is possible. Common Qualities of Perceptive Types: · Are comfortable with "winging it" · Like to have an open-ended approach · Postpone decisions - sometimes procrastinate

10. If you are a Judger, you prefer to decide quickly, and therefore you naturally organize your world. You are good at making decisions and feel uncomfortable when things are "left up in the air." You enjoy accomplishing tasks by setting goals, and you have the discipline to achieve them. Picture of a Judger: hitting the target; getting the job done; accomplishing things. Analogy: Finishing the race as opposed to starting it; all has been decided by the end. Common Qualities of Judging Types: · They are comfortable when everything is organized · Like to have a time-framed schedule · Decide quickly · Methodical - make a plan, use it

11. 5-1 Figure 5-1 An OB Model for Studying Individual Differences McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Personality traits Self Concept Self-esteem Self-efficacy Self-monitoring The Unique IndividualForms of Self- Expression Attitudes Abilities Emotions Self-Management McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

12. Self-concept is a person’s self-perception as a physical, social, spiritual being. Cognitions are a person’s knowledge, opinions, or beliefs. Self-esteem is one’s overall self-evaluation. 5-2 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. From Self-Concept to Self-Management McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

13. 5-3 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: How to Build Self-Esteem in Yourself and Others 1. Live consciously 2. Be self-accepting 3. Take personal responsibility 4. Be self-assertive 5. Live purposefully 6. Have personal integrity McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

14. Self-efficacy is the belief in one’s ability to do a task 5-4 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Self-Efficacy (“I can do that.”) McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

15. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 5-5 Figure 5-2 Self-Efficacy Beliefs Pave the Way for Success or Failure McGraw-Hill Prior experience Behavior models Persuasion From Others Assessment Of Physical Emotional State Sources of Self- Efficacy Beliefs FeedbackResults High “I know I can do this job Self-efficacy Beliefs Low “I don’t think I can get the job done.” Behavior Patterns Behavior Patterns Success Failure

16. Self-monitoring is observing one’s own behavior and adapting it to the situationmonitoring 5-6 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Self-Monitoring McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

17. 5-7 Figure 5-3 A Social Learning Model ofModel Self-Management McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Person (Psychological self ) Situational cues Consequences Behavior McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

18. 5-8 Table 5-1 Covey’s Seven Habits: An Agenda for Managerial Self-Improvement 1. Be proactive 2. Being with the end in mind 3. Put first things first 4. Think win/win 5. Seek first to understand, then to be understood 6. Synergize 7. Sharpen the saw McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

19. Habit 1: Be Proactive The endowment of self-knowledge or self-awareness. This is the “ability to choose your response” a.k.a. “response- ability”. Lower end of continuum: “ineffective people who transfer responsibility by blaming others”. Upper end of continuum: Being aware of the creative power and potential and “forces” in your life.

20. Habit 2: Begin with the End in Mind The endowment of imagination and creation Lower end of continuum: Being futile about goals, efforts, and purposes. Upper end of continuum: Having a sense of hope and purpose

21. Habit 3: Put First Things First The endowment of willpower Bottom end of continuum: Being ineffective, avoiding responsibility Upper end: Highly disciplined life that focuses on the important but not urgent activities of life

22. Habit 4: Think “Win/Win” Endowment of abundance mentality Everything is seen through principles The continuum varies from it being scarce to an “abundant mentality through feelings of intrinsic self-worth and a benevolent desire for mutual benefit”

23. Habit 5: Seek First to Understand, Then to be Understood The endowment of courage balanced with consideration Truly listening to someone Continuum varies from fight-and-flight instincts to a mature two-way communication

24. Habit 6: Synergize The endowment of creativity Most negotiation is bargaining and should result in some kind of compromise. In a synergistic relationship, position is left. Everyone understands the basic needs and interests and then find solutions that satisfy them both

25. Habit 7: Sharpen the Saw The unique endowment of continuous self- renewal This is used to overcome entropy – the point where everything breaks down If you do not improve and renew yourself constantly, you will fall into entropy

26. 5-9 Table 5-2 The Big Five Personality Dimensions McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Intellectual, imaginative, curious, broad-minded Openness to experience Relaxed, secure, unworriedEmotional stability Trusting, good-natured, cooperative, softhearted Agreeableness Outgoing, talkative, sociable, assertive Extraversion CharacteristicsPersonality Dimension Dependable, responsible, achievement oriented, persistent Conscientiousness McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

27. A Proactive Personality is an action-oriented person who shows initiative and perseveres to change things. 5-10 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Proactive Personality McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

28. 5-11 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Locus of Control External locus of control: One’s life outcomes attributed to environmental factors such as luck or fate. Internal locus of control: belief that one controls key events and consequences in one’s life. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

29. 5-12 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: How Lucky People Make Their Own Luck 1. Maximize chance opportunities 2. Listen to your lucky hunches 3. Expect good fortune 4. Turn bad luck into good McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

30. 5-13 Table 5-3 Seven Major Mental Abilities McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Able to perceive spatial patterns and to visualize how geometric shapes would look if transformed in shape and position Spatial Ability to make quick and accurate arithmetic computations such as adding and subtracting Numerical Ability to produce isolated words that fulfill symbolic or structural requirements Word fluency Understanding what words mean and readily comprehending what is read Verbal comprehension DescriptionAbility McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

31. 5-14 Table 5-3 Seven Major Mental Abilities (Cont.) McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Ability to reason from specifics to general conclusions Inductive reasoning Ability to perceive figures, identify similarities and differences, and carry out tasks involving visual perception Perceptual speed DescriptionAbility Having good memory for paired words, symbols, lists of numbers, or other associated items Memory McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

32. 5-15 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Positive and Negative Emotions Negative emotions (Goal incongruent): - Anger- Fright/anxiety - Guilt/shame- Sadness - Envy/jealousy- Disgust Positive emotions (Goal congruent) - Happiness/joy- Pride - Love/affection- Relief McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

33. Emotional Intelligence is the ability to manage oneself and interact with others in mature and constructive ways Emotional 5-16 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Emotional Intelligence McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

34. 5-17 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Skills & Best Practices: How to Develop Personal and Social Competence Through Emotional Intelligence Personal Competence Self-Awareness Emotional self-awareness Accurate self-assessment Self-confidence Self-Management Emotional self-control Transparency Adaptability Achievement Initiative Optimism Social Competence Social Awareness Empathy Organizational awareness Service Relationship Management Inspirational leadership Influence Developing others Change catalyst Conflict management Building bonds Teamwork and collaboration McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

35. Chapter 10 Target Markets: Segmentation, Evaluation, and Positioning

36. Objectives Learn what a market is Understand differences among targeting strategies Become familiar with segmentation variables Know what segment profiles are and how they are used Evaluate market segments Identify factors that influence selection of specific market segments Understand positioning Become familiar with sales forecasting methods

37. Whole Baby

38. MAJOR TOPIC AREAS 1. What Are Markets? What Are Markets? 2. Target Market Selection Process Target Market Selection Process 3. Step 1: Identify the Appropriate Targeting Strategy Step 1: Identify the Appropriate Targeting Strategy 4. Step 2: Determine Which Segmentation Variable to Use Step 2: Determine Which Segmentation Variable to Use 5. Step 3: Develop Market Segment Profiles Step 3: Develop Market Segment Profiles 6. Step 4: Evaluate Relevant Market Segments Step 4: Evaluate Relevant Market Segments 7. Step 5: Select Specific Target Markets Step 5: Select Specific Target Markets 8. Product Positioning and Repositioning Product Positioning and Repositioning 9. Developing Sales Forecasts Developing Sales Forecasts

39. 1.1. WHAT ARE MARKETS? Group of people seeking products in a specific product category (see Ch. 2 definition) Can be… specific location (flea market) large geographic area relationship between supply and demand (market for given product) action word, as in market a product

40. Market Requirements Need/desire for a particular product Have ability to purchase product Willing to use buying power Have authority to buy specific products

41. 2.2. TARGET MARKET SELECTION PROCESS Figure 10.1

42. Target Marketing in Action

43. 3.3. STEP 1: TARGETING STRATEGY Undifferentiated Concentrated Differentiated Differentiated Targeting (Page 273)

44. Undifferentiated Targeting Strategy Homogeneous Market Figure 10.2

45. Undifferentiated strategy satisfies most customers with a single marketing mix Courtesy of The Beef Checkoff Program

46. Concentrated Targeting Strategy Through Market Segmentation Figure 10.2 Heterogeneous Market

47. Market Segmentation The process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs. Market Segment Gender-Based Segmentation (Page 274)

48. Conditions For Successful Market Segmentation 1. Customer product needs are heterogeneous 2. Segments identifiable and divisible 3. Market divided so segments can be compared on sales potential, costs, and profits 4. At least one segment has potential to justify marketing expense 5. Segment can be reached with a particular marketing mix

49. Concentrated strategy allows a firm to analyze and satisfy a specific group What group is being addressed in this ad? Courtesy of General Motors Corp. Used with permission, GM Media Archives.

50. Differentiated Targeting Strategy Through Market Segmentation Figure 10.2

51. A firm expands its marketing mix to gain marketing segments, like cotton® trying to gain interest in the executive market Reprinted with permission of Cotton Incorporated.

52. 4.4. STEP 2: DETERMINE WHICH SEGMENTATION VARIABLES TO USE Figure 10.3

53. DemographicDemographic Variables Age Gender Race Ethnicity Income Education Occupation Family size Family life cycle Religion Social class

54. Gender is a common target in marketing to a demographic Reprinted with permission of The Dial Corporation.

55. Demographic Data Composite U.S. Demographics, http://www.adherents.com/adh_dem.html http://www.adherents.com/adh_dem.html Additional U.S. Demographics Additional U.S. Demographics

56. Age Group Spending Levels Figure 10.4

57. Worldwide Cost Of Living Survey (2006) gobalEDGE, http://www.mercerhr.com/attachment.dyn?idContent=1231390&filePath=/ attachments/English/Mercer_Cost_of_living_2006_summary_table.pdf http://www.mercerhr.com/attachment.dyn?idContent=1231390&filePath=/ attachments/English/Mercer_Cost_of_living_2006_summary_table.pdf See Top 50 Rankings See Top 50 Rankings

58. Life Cycle Stages

59. Family Life Cycle Stages Source: Jason Fields, “America’s Families and Living Arrangements: 2003,” Current Population Reports, U.S. Census Bureau, 2003. Figure 10.5

60. Geographic Variables Climate Terrain City size Population density Urban/rural areas

61. Market Density The number of potential customers within a unit of land area.

62. U.S. Population Urban vs. Rural Wikipedia, http://en.wikipedia.org/wiki/Demographics_of_the_United_States - http://en.wikipedia.org/wiki/Demographics_of_the_United_States - Most Populous Cities, etc.

63. Geodemographic SegmentationSegmentation A method of market segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information.

64. Micromarketing An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets.

65. Psychographic Variables Personality characteristics Motives Lifestyles

66. Psychographic variables at BMW

67. Lifestyle segmentation focuses on how people want to spend their time Reprinted with permission of Merrell

68. VALS Types Take the VALS Survey Figure 10.6

69. Behavioristic Variables Dividing a market according to some feature of consumer behavior toward a product

70. Benefit Segmentation The division of a market according to benefits that consumers want from the product. Toothpaste

71. Segmenting Business Markets  Geographic Location  Type of Organization  Customer Size  Product Use

72. 5.5. STEP 3: DEVELOP MARKET SEGMENT PROFILES Similarities among potential customers Differences among people and organizations in different segments

73. 6.6. STEP 4: EVALUATE RELEVANT MARKET SEGMENTS © Microsoft Sales Estimates Market potential Company sales potential (breakdown and buildup) Competitive Assessment Cost Estimates

74. Market Potential Total Market Potential CompanyMarketShare Rest of Industry

75. 7.7. STEP 5: SELECT SPECIFIC TARGET MARKETS Choose market segmentation Available resources to compete in market segmentation Confirm requirements of market segment Long-term growth of market segment

76. 8.8. PRODUCT POSITIONING AND REPOSITIONING Product positioning creating and maintaining a certain concept of a product in customers minds. Perceptual Mapping Bases for Positioning Repositioning

77. A changing environment can determine the need for repositioning as seen in this V8 ad Reprinted with permission of CSC Brands L.P.

78. Toothpaste Product Positions Figure 10.7

79. Perceptual Map For Pain Relievers Figure 10.8

80. 9.9. DEVELOPING SALES FORECASTS Sales forecast The amount of a product a company expects to sell during a specific period at a specified level of marketing activities. Executive Judgment

81. Surveys  Customer Forecasting  Sales Force Forecasting  Expert Forecasting  Delphi Technique

82. Time Series Analysis Trend analysis – aggregate sales data over many years to determine trends in annual sales Cycle analysis – analysis over 3-5 years to ascertain whether sales fluctuate in a consistent manner Seasonal analysis – daily, weekly, or monthly sales figure to evaluate sales influences of seasonal factors Random factor analysis – attributing erratic sales variations to random events

83. Regression Analysis Predicting sales based on finding a relationship between past sales and one or more independent variables, such as population or income

84. Market Test Making a product available to buyers in one or more test areas and measuring purchases and consumer responses to marketing efforts. McDonald’s Market Tests Chicken Breast Strips

85. Using Multiple Forecasting Methods Diverse product lines Product sold to different market segments Variation in length of needed forecasts Verifying results of one method by using others