Marketing

It describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services.

• Need Recognition: result of an imbalance between actual and desired states
• Information search: searching for information about the alternatives available to satisfy the need or want
• -Internal search: info stored in memory
• _external search: information from the outside which is influenced by the 4 P's
• Once all info is collected the buyer constructs an evoked set (the consumers preferred alternatives)
• Evaluation of Purchases and Alternatives: using the info gathered, the consumer evaluates and compares alternatives (comfort, price, style, durability)
• Post Purchase Behavior: based on consumers expectations from the purchase
• -cognitive dissonance: inner tension after recognizing an inconsistency between behavior and consumers' values or opinions

• Involvement is the most significant determinant in classifying buying decisions. It is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.
• Routine Response Behavior: frequently purchased, low cost goods and services that require little search and decision time
• Limited Decision Making: previous product experience but unfamiliar with current brands
• Extensive Decision Making: buting an unfamiliar, expensive product

• Interest
• Perceived Risk: as the perceived risk increases so does involvement
• Financial Risk: exposure to loss of wealth or purchasing power
• Social Risk: when buying products that can affect peoples social opinion of you
• Psychological Risk: making the wrong decision may cause concern or anxiety
• Physical Risk

• Social / Cultural Influences
• -Culture: values, languages, customs, rituals, and laws that shape the behavior of people
• Social Classes: a group who are considered nearly equal in status or community esteem
• -occupation, income, and education
• Reference groups: groups that influence the buying behavior of people
• Aspirational reference groups: groups that you would like to join
• Non-aspirational / dissasociative reference groups: groups that you don't want to be a part of
• Opinion Leader: those who influence the opinions of others
• -usually the 1st to try new things
• -more knowledge / more informed
• -more interest
• -more sociable or active
• Subculture: a group who share elements of the overall culture as well as unique elements of their own group
• Family: the most important social institution for many consumers
• Roles: Initiators suggest or plant the seed for the purchase process; Decision maker is the one who has authority to make a decision; gatekeeper controls the flow of information into the family; syncratic role is decision made by both authorattive figures in the unit

• Needs and Motives: the driving forces that cause a person to take action to satisfy specific needs
• Maslow's Hierarchy of Needs: physiological (food, water, shelter), safety/security (freedom from pain and discomfort), social needs (love and a sense of belonging), self esteem (self respect and a sense of accomplishments), self actualization (finding self fulfillment and self expression)

• Perception is selecting, organizing, and interpreting stimulus into a meaningful picture
• Selective Exposure is noticing certain stimuli and ignoring others
• Selective Retention is remebering only info that supports personal feelings or beliefs
• Selective Distortion is changing / distorting information that conflicts with your feelings or beliefs

• Attitudes are a learned tendency to respond consistently toward a given object
• Learning is the process that creates changes in behavior through experience and practice
• Experiential Learning is when an experience changes your behavior
• Conceptual Learning is not acquired through direct experience

• Drive, Cue, Response, Reinforcement all develop a habit.
• Stimulus generalization: when 1 response is extended to a 2nd stimulus similar to the 1st (jello gelatin, jello fruit pop, clorox, clorox cleaners)
• Stimulus discrimination: learning to differentiate among similar products

• Personality: how people typically react to situations consistently
• Self concept: how consumers perceive themselves (attitudes, perceptions, beliefs, and self evaluations)
• Real self: who we think we are
• Ideal self: who we want to be
• Looking glass self: how we think others see us

It is the marketing of goods and services to individuals and organizations for purposes other than personal consumption

• Types of Consumers:
• Producers, Resellers (wholesellers and retailers), governments, and institutions

• Derived demand ( org's buy products to be used in producing their customers' products) it is based on expectations of future demand
• Inelastic demand ( a change in price will not significantly change demand for the product)
• Joint demand ( when 2 or more items are used together in a final product) Sales are directly linked
• Fluctuating Demand

• Larger purhase volume (bigger quantities)
• Fewer customers
• Location ( more geographically concentrated)
• Leasing (reduce capital outflow, tax advantages)
• Reciprocity (businesses buy from their customers)

• Is all people in an organization who become involved in the purchase decision.
• -Initiator, influencer, decision maker, purchaser (the one who actually negotiates the purchase), users (members of the organization who will actually use the product), gatekeeper

• New Buy: buying for the 1st time
• Modified Rebuy: a change in the original good or service
• Straight Rebuy: routine purchase (no new info required)

• Installations / Major Equipment (large or expensive machines)
• Accesory Equipment (less expensive and shorter lived than installations such as tools and fax machines)
• Raw materials
• Component parts (ready for assembly or need very little processing)
• Processed materials (used to make other products)
• Supplies (consumable items that don't become part of the finished product)
• Business services (expense items like janitorial or advertising)

• Market: people and or organizations that are willing and able to buy
• Market Segmentation: Breaking up the market in terms of people / organizations that share similar characteristics. it helps marketers define needs and wants more precisely and helps to allocate resources

• Geographic segmentation (region, market size, density, or climate)
• Demographic (age, gender, income, ethnicity)
• Psychographic (personality, motives, lifestyle)
• Benefit (according to the benefits they seek from the product)
• Usage rate ( amount of product bought and consumed)
• Comany characteristics: such as geographic location, type, size, and product use
• Buying processes (how they buy)

• Undifferentiated targeting strategy: when you use a single marketing mix (1 product, 1 market)
• Differentiated targeting strategy: applying the 4 P's to different segments
• Concentrated targeting: focusing on one segment of the market

• Positioning: a markeiting mix to influence potential customers' perception of a brand, product line, or organization
• Perceptual Mapping: examining where a product / org is located relative to competition

• Is a computerized info system that enables managers to obtain and manipulate information as they are making decisions
• Marketing Research: collecting, classifying, and storing info to be used to solve a problem and/or take an advantage of an opportunity

• Identify and formulate the problem / opportunity
• Gather primary data
• Specify the sampling procedures
• Collect the data
• Analyze the data
• Prepare and present the report
• Follow up

• Research Design: says which questions must be answered, how and when teh data will be gathered and analyzed
• Primary Date: primary info used for solving the particular problem