Ch. 1 - Consumer Behavior and Technology Flashcards
Marketing
the activity, instructions, and processes for creating, communicating, and delivering products that have value for customers, clients, partners, and society
Uncovers consumer’s unmet desires to then create and promote superior offerings
Consumer behavior
The study of consumers actions while searching for, purchasing, using, evaluating, and disposing of products and services they expected would satisfy their needs
explains how and why people spend money, time, and effort on these goods and describes why people pick certain brands, prices, places, times, etc.
Explain the need type relationship
Everyone needs something, maybe for the same necessary reason. But our deeper needs touch on the type of product someone is more receptive towards in relation to advertising and purchase behaviors
Marketing Concept
That marketing is satisfying consumer’s needs, creating value, and retaining customers. To only produce goods already determined to satisfy consumer needs and can meeting the goals of the organization.
Marketing-oriented companies
Don’t persuade customers to buy what they have already produce. Make only products that satisfy customer’s needs, attempting to convert first-time buyers into long-term customers
The production concept
Conceived by Henry Ford
Makes products that are the most inexpensive, uniformly produced, for the lowest price possible
Ignores customer’s diverse needs
The product concept
Satisfying customers’ needs means marketing products offering the most features and ignoring customers wanting a simple, easy to use product
That consumers buy products offering the highest quality, best performance, most features.
Marketing myopia
centering on the products rather than the need it’s designed to fulfill
- short sided (myopic) approach
- ignores consumer needs
ex: Apple software only for Mac, not allowing to share pictures. Leads more people buying Microsoft systems that, although less efficient and harder to use, can share with others
Selling concept
before marketing focus on consumers. companies should sell what they had already made instead of making only those products they could sell
assumes consumers would only buy if pressured, leading to people becoming unsatisfied and not buying again
Biological needs
nourishment, air, water, shelter
share them with everyone else, identitcal
Psychological needs
shaped by upbringing, culture, social stratum, financial resources, and education
developed later
Market segmentation
divides a market into subsets of consumers with common needs or characteristics.
each subset identifies a group with shared needs different from other consumers, termed market segments
Targeting
selecting segments the company views as prospective customers and pursuing them with distinct offerings.
Positioning
when company creates a distinct image and identity for its products, services, and brand in consumers’ minds.
must differentiate the company’s offerings from the competition
does so by stressing the product’s unique benefits that fulfills their specific needs
essential, as most new products (different sizes, flavors, etc.) fail to capture markets because they are perceived as mee too products
Marketing mix (overview)
the four p’s (price, product, place, and promotion)
segmentation, targeting, and positioning implemented across these 4 components
Marketing mix (in depth)
Price: the list price, discounts, allowances, and payment methods
Product or service: features, designs, bands, and packaging; post-purchase benefits like warranties and return policies
Place: distribution through stores, online, or other outlets
Promotion: advertising, sales promotion, public relations, and sales efforts developing product awareness and demand
Traditional Marketing
paying large sums for large number of potential buys via mass media, only able to see effectiveness looking at sales and post-purchase studies
Electronic communications
two-way interactive exchange where consumers can instantly react to messages and marketers can gauge effectiveness instantaneously
click-to-call ad
google making money when you click an ad to call a nearby hotel, whether or not you book a room
Value exchange
technologies create this ability for marketers to provide value through efficient shopping, more information, customized products, and entertainment
the internet has enabled marketers to gather more precise data about consumers by _______ rather than relying on their _____.
observing shoppers
responses to post-purchase surveys
Cookies
invisible bits of code stored on webpages exchanged by data brokers and marketers that allows data aggregators to track who is interested in what
How can marketers optimize their resources?
By targeting individual consumers instead of large segment
Why are tailored ads more powerful?
They allow advertisers to zero in on users that have already shown interest in their products
Cross-screen marketing
tracking and targeting users across their computers, mobile phones, and tablets. “pushing” personal ads from one platform to the other.
essential to capturing the attention of consumers watching television while surfing the internet
Customer value
The ratio between customers’ perceived benefits (economic, functional, and psychological) and the resources they use to obtain those benefits (monetary, time, effort, psychological)
Customer satisfaction
customers’ perceptions of the performance of the product or service in relation to their expectations
Customer retention
turning individual consumer transactions into long-term customers
Why is it more expensive to win new customers?
- Loyal customers buy more products and are ready for new ones
- Loyal customers are less price sensitive
- Servicing existing customers is less expensive that training new ones
- Loyal customers spread positive word-of-mouth
- Marketing towards new customers is expensive, with low customer turnover being correlated with higher profits
- Increased retention makes employee jobs easier, and happy employees means happier customers
How does technology enhance customer relationships and retention?
By engaging consumers with brands
What are the two forms of customer engagnement?
Emotional bonds and transactional bonds
Emotional bonds
represents a customer’s high level of personal commitment and attachment to the company
