Chapter 12 - Understanding the Customer Flashcards
What is a brand
A relationship between company and customers based on trust.
-Famous brand name, jingle, pitch person, memorable commercial
Evolution of Marketing Concept
-Product Orientation (past era)
-Sales Orientation (1920s)
-Customer Orientation (1950s-present)
Marketing Concept
Philosophy that businesses should provide goods and services that satisfy customer needs.
Businesses Must Mobilize its Marketing Resources to:
-Design and provide products to satisfy
-Price the product (acceptable)
-Promote product (aware)
-Ensure product is distributed and available
Customer Relationship Management
Tracks and organize info about current and prospective customers
-Marketing strategies to develop and sustain relationships
Satisfying Customers Requires Giving
-Right Product
-Right Place
-Right Price
-Right Time
4 Kinds of Utility
-Form Utility
-Place Utility
-Time Utility
-Possession Utility
Effective Marketing Stages
- Research & Development
- Marketing Phase 1
- Operations & Planning
- Marketing Phase 2
- [Satisfied] Customer
Four Elements of Marketing Mix
-Product
-Price
-Promotion
-Placement (distribution)
Marketing Strategy
Make best use of resources
- Target Market
- Marketing mix/Marketing activities
Customer Decision Process
Recognize problem/ opportunity –> Search for Information –> Evaluate Alternatives –> Purchase –> Evaluate after purchase
Influences on the Decision Process
Situational Influences: physical and social surroundings, time, purchase reason, buyer’s mood and condition.
Psychological Influences: perception, motives, learning, attitudes, personality, lifestyles.
Social Influences: family, roles, peer groups, social class, culture and subcultures
Brands can Establish Connection with Consumers By:
-Buying product and liking it
-Someone in your circle buying the product and liking it
-A positive review
-Promotional messages from the business
Companies can Optimize their Marketing By:
-Developing products (meet the needs)
-Charging prices (reasonable)
-Selecting distribution (where they shop)
-Building promotion (to reach target group)
Common Dimensions of Market Segmentation
-Benefit
-Demographic
-Geographic
-Sociographic
-Behavioral
Nielsen’s Market Segmentation Systems
-PRIZM (consumer preferences and behaviours)
-P$YCLE (financial)
-ConneXions (technology)
Forces of the Marketing Environment
-Economic Forces
-Sociocultural Forces
-Competitive Forces
- Legal and Regulatory Forces
-Technological Forces
Other Applications for Marketing Research
-Assessing the business environment ( and opportunities)
-Understanding your position (and competitors)
-Learning preferences (customers)
-Evaluating likely success of product
4 Steps of Market Research
- Define Research Goal
- Gather Information (primary and secondary)
- Interpret Information
- Make Marketing Decisions
Building Brand Value
- Customers hope to find products
- Companies hope to sell products
