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Definition
| i. An individual’s buying decisions are further influenced by psychological factors: perception, motivation, learning, and beliefs and attitudes. These factors are what consumers use to interact with their world. |
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Term
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| Describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services also includes factors that influence purchase decisions and product use. |
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| iii. Individuals and households who buy goods and services for person consumption, their buying behaviors and, final consumers combine to make up the consumer market |
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| Key Environmental Factors affecting Consumer Behavior |
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Definition
1)Culture-Subculture-Social Class
2)Social-Reference groups-family-roles
3)Personal-Age, Occupation, Economy, self concept
4))Psychological- Motivation, Perception, Learning, Beliefs attitudes
=Buyer |
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| Ethic markets and their impact on American consumption |
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Definition
Hispanics--Will grow 64% in 20 years, spanish media easy reach, brand loyal. generics dont sell well.
Black- Growing more sophisticated, brand concience, specific media, race sensitive
Asians- Fastest growing, most sophisticated, always price conscious, not brand loyal
Mature- 12% of US control 50% income,health is #1 concern. |
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Definition
| Motives are driving forces that cause a person to take action to satisfy specific needs |
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| Internal stimulus that calls for action |
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| Minor stimuli that affect response |
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Definition
| describes changes in an individual’s behavior arising from experience |
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Definition
| Consumers screen out information |
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Definition
| Highly involved, little brand differences |
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| Low involvement, little brand differences |
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Definition
| Low involvement, significant perceived brand differences |
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| Major influences on business buyer behavior and key factors |
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Definition
| Cultural, Social, Personal, Psychological |
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Term
| Stages of the business buying process |
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Definition
| -need recognition, information search, evaluation of alternatives, purchase decision, post purchase behavior |
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Term
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Definition
1. • Business Buying on the Internet
2. – 75% of purchased at least something online
3. – 13% of all direct material purchases (2004)
4. – Reverse auctions account for much of the online
5. purchasing activity
6. – E-procurement offers many benefits:
7. • Access to new suppliers
8. • Lower purchasing costs
9. • Quicker order processing and delivery |
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Definition
– Consist of churches, schools, prisons, hospitals, nursing homes and other institutions that provide goods and services to people in their care.
– Often characterized by low budgets and captive patrons.
– Marketers may develop separate divisions and marketing mixes to service institutional markets. |
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Term
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Definition
– Governmental units – federal, state, and local –that purchase or rent goods and services for carrying out the main functions of government.
• Government Markets
– More than 82,000 buying units.
– Require suppliers to submit bids.
– Favor domestic suppliers.
– Extensive paperwork is required from suppliers.
• Government Markets
– Government buyers often favor:
• Depressed business firms and areas
• Small businesses
• Minority-owned businesses
• Firms which follow non-discriminatory practices |
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Term
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Definition
| The PIMS (Profit Impact of Market Strategy) of the Strategic Planning Institute is a large scale study designed to measure the relationship between business actions and business results. |
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Term
| Steps in market segmentation, targeting and positioning |
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Definition
i. Segmentation-
1. Identify bases for segmenting the market
2. Develop segment profiles
ii. Targeting
3. Develop measure of segment attractiveness
4. Select target segment(s)
iii. Positioning
5. Develop positioning for target segments
6. Develop a marketing mix for each segment |
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Term
| Bases by consumer segmentation |
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Definition
Better matching of customer needs
•Enhanced profits for business
•Better opportunities for growth
•Retain more customers
•Target marketing communications
•Gain share of the market segment |
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Term
| Applications of Segmentation approaches |
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Definition
| Geographical, Demographical, Psycho graphical, and Behavioral. |
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Term
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Definition
•Size of market potential and our share
•Forecasted market growth
•Our sales potential within the segment
–In dollars, units, retail, dealer
–Attainable market share given promotional budget and competitors' expenditures
–Required sales and market share to break even
–Expected profit margins in the segment
•Brand loyalty of existing customers in the segment
•Structural attractiveness
–Competitors
–Supplier characteristics
–First-mover advantages
–Previous pioneering effort |
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Term
| Simple segmentation process |
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Definition
i. Define the broad product-market
1. Health Market
a. Women’s Health
i. Osteoporosis Prevention Market
ii. Research for information
iii. Decide on segmentation method and criteria
iv. Draw a pie to:
1. Identify segments
2. Create mutual exclusive groups
v. Identify and label segments
vi. Profile the segments
1. Shared characteristics, shared benefits
2. What messages do they want to hear?
3. What media will reach them |
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Term
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Definition
is the act of designing the company's offer so that it occupies a distinct and valued place in the target customers' minds
Uniqueness, Importance, Believably |
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Term
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Definition
a. 1. Identify bases for segmenting the market
b. 2. Develop segment profiles |
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Definition
a. 3. Develop measure of segment attractiveness
b. 4. Select target segments |
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Definition
a. 5. Develop positioning for target segments
b. 6. Develop marketing mix for each segment |
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Term
| Creating Competitive differentia by |
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Definition
• Product Leadership (Sony)
• Change in service expectation (Domino’s Pizza)
• Elevating the product image (Godiva Chocolate)
• Providing unique personnel (Container Store)
• Product specialization (Ford Motors) |
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| Three levels of Product Offering |
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Definition
| Core benefit, actual product, augmented product |
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Definition
| 1. Frequently and Immediately |
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Definition
| 1. Comparison shop, less frequently boughts |
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Definition
| 1. Special purchases, high price, brand identification |
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Term
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Definition
| 1. Stuff we don’t want to think about. (cemetery plots) |
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Term
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Definition
A name, term, sign, symbol, design, or a combination of these, that identifies the maker or sellers of a product or service
1. Corporate
2. Manufacturer
3. Family
4. Product |
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Term
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Definition
1. Number of different product lines carried by company
2. GM has nine product lines just in automobiles |
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Term
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Definition
1. Number of different versions of each product in the line
2. GM’s line depth ranges from 4 Hummers to 27 Chevrolets |
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Term
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Definition
| 1. What’s the difference between a Pontiac and an Oldsmobile? |
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Term
| Four characteristics of a service |
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Definition
| Intangibility, Inseparability, Variability, Perishability |
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Term
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Definition
| i. A Service is a form of product that consist of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. |
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Term
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Definition
1. Become Customer Obsessed
2. Create different/unique delivery and image
3. High Quality standards |
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| Three types of marketing in services industries |
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Definition
| Internal Marketing, External marketing, Interactive marketing |
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