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2013-08-27 02:16:51

for midterm exam
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  1. Refers to the buying behaviour of people who buy goods and services for personal use
    Consumer Buying Behaviour
  2. The central question for marketers is:
    “How do consumers respond to various marketing efforts the company might use?”
  3. Marketing and environmental stimuli enter the buyer’s Black Box.
    Model of Buyer Behaviour
  4. consists of the buyer’s characteristics and buying processes.
    Black Box
  5. Black Box in turn prompts buyers responses
    • Product and brand choice
    • Dealer choice
    • Payment timing and amount.
  6. Consumer Buyer Influences
    • Cultural factors: Culture, subculture, social class.
    • Social factors: Reference groups, family, roles, status
    • Personal factors: Age, lifecycle, occupation, income
    • Psychological factors: Motivation, perception, learning, beliefs, attitudes.
  7. the most basic cause of a person's wants and behavior.
  8. is learned from family, church, school, peers, colleagues.
  9. includes basic values, perceptions, wants and behaviors.
  10. are groups of people with shared value systems based on  common life experiences.
  11. Relatively permanent, ordered divisions. Members share similar values, interests and behaviours
    Social Class
  12. Social class determined by a combination of:
    • Occupation
    • Income
    • Education
    • Wealth
    • Other variables
  13. Social Factors
    • groups
    • family
    • roles and status
  14. Reference groups, aspirational groups.Importance of opinion leader.
  15. Most important consumer buying organization.
  16. Expect activities and esteem given by society to those roles.
    Roles and status.
  17. personal Factors
    • occupation
    • economic situation
    • Age and family life-cycle stage
    • Lifestyle
  18. What we do affects what we need and how much we have to spend
  19. Affects real spending and consumer confidence in borrowing.
    Economic situation.
  20. Consumer needs change over time.Difference between chronological and perceived age
    Age and family life-cycle stage.
  21. a person’s pattern of living as expressed in his or her activities, interests and opinions.
  22. Maslow’s Hierarchy of Needs
    • Physiological needs most important.
    • Safety needs – protection, security.
    • Social needs – sense of belonging, love
    • Esteem needs – status, recognition
    • Self-actualization needs – self-development
  23. Also known as psychographics
  24. the process by which a person’s efforts are energized & directed
  25. how we view & interpret.
  26. any relatively permanent change in behavior that occurs as a result of experience.
  27. descriptive thought that a person holds about something.
  28. feelings or emotions toward something, either positive or negative.
  29. Psychological Factors
    • motivation
    • perception
    • learning
    • beliefs
    • attitudes
  30. Consumer Buyer Decisions
    • Need recognition -- Realize requirement.
    • Information search -- Assess various products.
    • Evaluation of alternatives -- Determine relative value of each.
    • Purchase decision -- Select best value.
    • Post purchase behaviour – Assess degree of satisfaction.
  31. Buyer becomes aware of a difference between a desired state and an actual condition.
    Need Recognition
  32. Individual may be unaware of the problem or need.
    Need Recognition
  33. Marketers may use sales personnel, advertising and packaging to trigger recognition of needs or problems.
    Need Recognition
  34. Recognition speed can be slow or fast.
    Need Recognition
  35. This stage begins after the consumer becomes aware of the problem or need.
    Information Search
  36. The search for information about products will help resolve the problem or satisfy the need.
    Information Search
  37. There are various sources of information
    Information Search
  38. Sources of Information
    • Personal – most effective. Family, neighbours, friends.
    • Commercial – most information. Advertising, salespeople.
    • Public-Mass media, consumer rating groups.
    • Experiential-Handling, examining, using the product
  39. The consumer compares different brands or choices.
    Evaluate Alternatives
  40. May use specific buying criteria, ranked according to importance.
    Evaluate Alternatives
  41. May use objective or subjective measures to evaluate.
    Evaluate Alternatives
  42. May be logical or emotional, depending on the situation.
    Evaluate Alternatives
  43. Consumer satisfaction is a function of consumer expectations and perceived product performance.
    Post Purchase Behaviour
  44. If performance is below expectation,
    dissatisfaction results.
  45. If performance meets expectations,
    satisfaction results.
  46. If performance exceeds expectations,
    delight results.
  47. The consumer compares performance against expectations for the product.
    Post Purchase Behaviour
  48. Is it better to over-promise and under-deliver, or under-promise and over-deliver?
    Post Purchase Behaviour
  49. Is it better to over-promise and under-deliver, or under-promise and over-deliver?
    Post Purchase Behaviour
  50. Buyer discomfort caused by post-purchase conflict.
    Cognitive Dissonance
  51. Affects major purchases; anxiety of not knowing if the right choice was
    Cognitive Dissonance
  52. Customer follow-up programs help to reduce this problem.
    Cognitive Dissonance
  53. When an organization introduces a new product, people do not begin the adoption process at the same time, nor do they move through it at the same speed.
    New Product Adoption
  54. New Product Adoption Stages
    • awareness
    • interest
    • evaluation
    • trial
    • adoption
  55. become aware of new product.
  56. seek information about product.
  57. decide whether trial makes sense.
  58. try product on small scale.
  59. decide to purchase product.
  60. Product Adopter Categories
    • Innovators
    • Early adopters
    • Early majority
    • Late majority
    • Laggards
  61. are the first adopters of new products
  62. are guided by respect (13.5%). They are opinion leaders in their communities and adopt new ideas early but carefully.
    Early adopters
  63. are deliberate (34%). Although they rarely are leaders, they adopt new ideas before the average person.
    Early majority
  64. are skeptical (34%).They adopt an innovation only after a majority of people have tried it.
    Late majority
  65. are tradition bound (16%). They are suspicious of changes and adopt the innovation only when it has become traditional.
  66. Vast and involves far more dollars and items than do consumer markets.
    Business Markets
  67. are organizations that buy goods and services for use in the production of other products and services that are sold, rented or supplied to others.
    Business buyers
  68. Business Buying Process
    • New or first-time purchase – new task.
    • Problem recognition.
    • General need description.
    • Product specification.
    • Supplier search.
    • Proposal solicitation (quotations).
    • Supplier selection.
    • Order-routine specification.
    • Performance review
  69. Identify bases for segmentation.Develop segmentation profiles.
    Segment markets.
  70. Measure of segment attractiveness.Select the target segment(s).
    Target segment(s).
  71. Develop positioning for each segment.Develop appropriate marketing mix.
    Position for target segment(s).
  72. Segmentation Variables
    • geographic
    • demographic
    • psychographic
    • behavioral
  73. World region or country.Region of country.City or metro size.Density or climate
    Geographic Segmentation
  74. Age, gender, family size, income, occupation, etc.
    Demographic Segmentation
  75. The most popular bases for segmenting customer groups. Easier to measure than most other types of variables.
    Demographic Segmentation
  76. Dividing a market into different groups based on: Social class, Lifestyle, Personality characteristics.
    Psychographic Segmentation
  77. Product usage and experiences
    Behavioral Segmentation
  78. quantity or purchase — light, medium, or heavy.
    Usage Rate
  79. our decisions are based on our experience with the brand.    Based on Occasions
  80. Consumer and business markets use many of the same variables for segmentation
    Segmenting Business Markets
  81. Business marketers can also use
    • Operating characteristics.
    • Purchasing approaches.
    • Situational factors.
    • Personal characteristics.
  82. Evaluating Market Segments
    • Segment size and growth.
    • Segment structural attractiveness.
    • Company objectives and resources.
  83. Analyze current segment sales, growth rates and expected profitability.
    Segment size and growth.
  84. Consider effects of: competitors, existence of substitute products, the power of buyers/suppliers.
    Segment structural attractiveness.
  85. Examine company skills and resources needed to succeed in that segment. Offer superior value/gain competitive advantage.
    Company objectives and resources.
  86. Segment Success Criteria
    • Measurable
    • Accessible
    • Substantial
    • Differentiable
    • Actionable
  87. Ability to measure numerically.
  88. Ability to reach segment.
  89. Ability to support the business.
  90. Ability to find unique position in segment.
  91. Ability to pursue and capture the segment.
  92. No segments and single marketing mix.
    Focus is on common (not different) needs of consumers.Product and marketing program are geared to the largest number of buyers.Uses mass advertising and distribution.
    Mass marketing (Undifferentiated).
  93. Large segments with specific marketing mixes.
    Firm targets several market segments and designs separate offers for each.The goal is to have higher sales and a stronger position with each market segment.This approach increases the costs of doing business.
    Differentiated marketing.
  94. Small segments with specialized marketing mixes.
    The focus is acquiring a large share of one or a few segments of niches.Generally, there are fewer competitors
    Niche marketing.
  95. Customized marketing to individuals.
    Tailoring products and marketing programs to suit the tastes of specific individuals and locations.
  96. Levels of Segmentation
    • Mass marketing (Undifferentiated)
    • Differentiated marketing
    • Niche marketing
    • Micro-marketing
  97. Markets are divided into segments; then profitable segments are selected as target audiences.
    target marketing
  98. Through targeting, the organization can:
    • design specific communication strategies to match the consumer’s needs and wants.
    • position the product in the most relevant way to match their interests.
  99. How a product is viewed by consumers relative to competing products.
    Product position.
  100. Three positioning steps.
    • Identify competitive advantages on which to build a differentiated position.
    • Choose the right competitive differentiation.
    • Select an overall positioning strategy.
  101. Key to winning target customers is to understand their needs better than competitors do and to deliver more value.
    Gaining Competitive Advantage
  102. extent to which a company can position itself as providing superior value.
    Competitive advantage
  103. Identifying Competitive Advantage
    • Product differentiation
    • Services differentiation.
    • Image differentiation
    • People differentiation
  104. Consistency, durability, reliability, reparability.
    Product differentiation.
  105. Speed, convenience, careful delivery.
    Services differentiation.
  106. Convey benefits and positioning.
    Image differentiation.
  107. Hiring, training better people than competition
    People differentiation.
  108. Successful Differentiation
    • Important – of value to consumers.
    • Distinctive – obvious and clear.
    • Superior – better value than competitors.
    • Communicable – explainable.
    • Pre-emptive – defendable and unique.
    • Affordable – delivers value for cost.
    • Profitable – company can make money.
  109. Take strong steps to deliver and communicate the desired position to target consumers.
    Communicating and Delivering the Chosen Position
  110. Support positioning strategy with marketing mix efforts.
    Communicating and Delivering the Chosen Position
  111. Monitor and adapt the position over time to match changes in consumer needs and competitors’ strategies.
    Communicating and Delivering the Chosen Position
  112. any market offering that is intended to satisfy a want or need.
  113. a type of product that is intangible and does not result in the ownership of anything.
  114. represent what buying the product or service will do for the customer.
  115. Anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need
  116. A form of product that consists of activities, benefits or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything
  117. Levels of a Product
    • Core product.
    • Actual product - Packaging, features, design, quality level, brand name.
    • Augmented product-Warranty, delivery, credit, installation, service.
  118. Consumer Product Types
    • Convenience
    • Shopping
    • Specialty
    • Unsought
  119. Purchased frequently and immediately.Low priced.Mass advertising.Many purchase locations.
  120. Bought less frequently.Higher price.Fewer purchase locations.Comparison shop.
  121. Special purchase efforts.High price.Unique characteristics.Brand identification.Few purchase locations
  122. New innovations.Products consumers do not want to think about.Require much advertising and personal selling.
  123. Those purchased for further processing or for use in conducting business.
    Industrial Products
  124. Does not include consumer products as they move through a distribution channel.
    Industrial Products
  125. Business Products Types
    • materials and parts
    • capital items
    • supplies and services
  126. Raw and manufactured materials, parts.
    Materials and parts.
  127. Buildings and equipment used in buyer’s production or operations, long useful life.
    Capital items.
  128. Operating supplies, repair and maintenance items and services.
    Supplies and services.
  129. Other Market Offerings
    • Organizations
    • persons
    • places
    • ideas
  130. Profit (businesses) and nonprofit    (schools and churches).
  131. Politicians, entertainers, sports figures, doctors and lawyers
  132. create, maintain or change attitudes or behavior toward particular places (e.g., tourism).
  133. Public health campaigns, environmental campaigns, family planning or human rights.
  134. Individual product decisions.
    • Product attributes.
    • Branding.
    • Packaging and labelling.
    • Product support services
  135. Product line decisions.
    • Product line.
    • Line filling.
    • Line stretching.
  136. Product and Service Attributes
    • Quality.
    • Features.
    • Style and design.
  137. Performance and satisfaction includes level and consistency.
  138. Differentiates a product from the competition.Assessed based on value and cost.
  139. Style equals appearance:  Design is the heart of the product.
    Style and design.
  140. is a name, term, sign, symbol, design or a combination of these that identifies the maker or seller of a product or service.
  141. Advantages to buyers. Product identification.Product quality.
    Advantages to sellers. Basis for product’s quality story.Provides legal protection.Helps to segment markets.
  142. Designing and producing the container or wrapper for a product.
  143. Developing a good package.
    • Packaging concept.
    • Package elements.
    • Product safety.
    • Environmental concerns.
  144. Printed information appearing on or with the package.
  145. Labelling several functions:
    • Identifies product or brand.
    • Describes several things about the product.
    • Promotes the product through attractive graphics.
  146. Assess the value of current services and obtain ideas for new services
    Product Support Services
  147. Assess the cost of providing the services
    Product Support Services
  148. Put together a package of services that delights the customers and yields profits for the company
    Product Support Services
  149. Group of closely related products because they function in a similar manner and are sold to similar segments with similar marketing mixes.
    Product line.
  150. refers to the number of items in the product line.
    Product line length
  151. Adding products to the line outside of current range.
    Can stretch upwards, downwards or both ways
    Line stretching.
  152. Adding more products within current range.
    Customers must see a difference or they will get confused by too many choices.
    Line filling.
  153. Product Mix Decisions
    • Product mix.
    • Width.
    • Depth.
    • Consistency.
  154. All of the product lines and items that a particular seller offers for sale.
    Product mix.
  155. Number of different product lines the company carries.
  156. Number of versions offered of each product in the line.
  157. How closely related the various lines are.
  158. The positive differential effect that knowing the brand name has on customer response to the product or service.
    Brand Equity
  159. Brand Equity Provides:
    • More brand awareness and loyalty.
    • Basis for strong, profitable customer relationships.
  160. Major Brand Strategy Decisions
    • Brand positioning.
    • Brand name selection.
    • Brand sponsorship.
    • Brand development.
  161. Attributes, benefits,beliefs and values.
    Brand positioning.
  162. Selection, protection.
    Brand name selection.
  163. Manufacturer’s brand, licensing, co-branding.
    Brand sponsorship.
  164. Line extension, brand extension, multi-brands, new brand.
    Brand development.
  165. Brand positioning
    Can position brands at any of three levels.
    • Product attributes.
    • Product benefits.
    • Consumer beliefs and values.
  166. It should suggest product’s benefits and qualities.
    Brand Name Selection
  167. It should be easy to pronounce, recognize and remember.
    Brand Name Selection
  168. It should be distinctive.It should translate easily into foreign languages.
    Brand Name Selection
  169. It should be capable of registration and legal protection.
    Brand Name Selection
  170. Brand sponsored and promoted by the producer of the good, such as Kellogg’s or IBM
    Manufacturer’s brand
  171. Selling the use of established brand names or identities to companies.
  172. Using the established brand names of two different companies on the same product.
  173. Brand Sponsorship
    • Manufacturer’s brand
    • Licensing.
    • Co-branding.
  174. Introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients or package sizes).
    Line extension.
  175. Using a successful brand name to launch a new or modified product in a new category.
    Brand extension.
  176. Offers a way to establish different features and appeal   to different buying motives.
  177. Developed based on belief that the power of its existing brand is waning and a new brand name is needed.
    New brands.
  178. Brand Development Strategies
    • Line extension.
    • Brand extension.
    • Multi-brands.
    • New brands.
  179. Brand Management
    Managing long-term brand equity.
  180. Managing long-term brand equity.
    • Deliver a full brand experience to customers.
    • Train employees to deliver the brand experience.
    • Rebrand if needed to meet changing customer needs.
    • Appoint brand equity managers.