Chapter 3.3 Flashcards
List the group factors influencing consumer buying decisions
-Culture
-Family
-Reference Group
-Opinion Leaders
List the individual factors influencing buying decisions
-Motivation
-Perception
-Learning Ability
-Attitude
-Personality
-Lifestyle
What are the phases in consumer decision making
-Need for recognition
-Search for information (Consumer finds out the price, benefits,ect)
-Evaluation of alternatives
-Purchase decision
-Post-purchase evaluation
Name the post-purchase behaviours that management must monitor
-Post-purchase satisfaction (or dissatisfaction)
-Post-purchase actions.
-Cognitive dissonance
List and elaborate on the types of decision making
-Real decision-making
Involves extensive problem-solving
-Impulse decision-making
Spur of the moment decision
-Hibitual decision making
When a customer is brand loyal
Elaborate on market segmentation
Divide the heterogeneous market into fairly homogeneous subsets
Define a homogeneous subset
A market that has customers with the same needs and wants
Define target marketing
Process of deciding which segments to pursue.
What are the benefits of market segmentation?
-A greater degree of customer satisfaction can be achieved
-New marketing opportunities can be identified
-It provides guidelines for the development of separate market offerings and strategies for various segments
What are the preconditions for the market segment
-Measurable
-Large enough
-Actionable
-Differentiable
List and explain the bases for segmenting markets
-Geographic
Divided into countries, population density ect
-Demographic
Divided according to age, education, generation, social class, race and culture
-Psychographic
Divided according to social class, personality traits , values and activities
What are the various behavioural segments
-Purchase occasions: regular vs. special occasion
Benefit sought: Benefit consumer seek- emotional or economical
User status: Non-users, ex-users, potential users or regular users
Usage rate: How often
Loyalty status: loyalty towards the organisation or its brand names
Buyer readiness stage: Customer’s readiness to buy.
What things should you consider when selecting a potential target market
Segment size and growth possibilities
Attractiveness and potential profitability
The resources and skills of the organisation
Compatibility with the organisation’s objectives
Cost of reaching the target market
What are the different target market segments
Undifferentiated targeting
Concentrated targeting
Discuss concentrated targeting
Focus on one specific segment
Can lead to greater expertise in production, distribution and marketing communication and better customer satisfaction
Disadvantage – all efforts focus on one source, if it does not work, may be out of business
Discuss differentiated targeting
Targets two or more market segments, with a unique marketing strategy for each one.
Focuses on different needs, but can be costly
Discuss undifferentiated targeting
Pursue whole market, ignores the differences
Advantage – economies of scale
Not really used anymore: Marketers should avoid trying to please everyone
Define product positioning
It refers to the way customers perceive a product in terms of its characteristics and advantages and its relation to the competition.
Name the positioning process
-Identify all major competing brands
-Identify which variables are most relevant to consumer needs and wants
-Determine the consumers perception of your brand and competing brands
-Analyse the brands current position
-Determine which features consumers prefer
-Develop a positioning strategy that best satisfies consumer preferences
