Domain 4: Buyers and Markets Flashcards
Statistical data relating to the population and particular groups within it.
Demographics
People advance through this over the course of a lifetime. Their needs change as they pass through these different stages. Thus, a bachelor is likely to be more interested in some kinds of purchases than a married woman would be. Practitioners of this marketing approach take these differences into account.
Family life cycle
When breaking down this concept, first think about what is a lifestyle. It’s a set of interests, opinions, or ideas that people adhere to and use to reflect a particular group or culture. It’s a definition in and of itself of who people are or hope to be.
Lifestyle
When it comes to this, stereotypes are drilled into us from birth, leading us to form clichéd opinions, such as all men like cars and sports, while women like shopping and reality TV.
Gender roles
The driving force within individuals that impels them to action. This is the activation or energization of goal-oriented behavior. This may be intrinsic or extrinsic. The term is generally used for humans. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, morality, or avoiding mortality.
Motivation
Composite of a consumer’s (1) beliefs about, (2) feelings about, (3) and behavioral intentions toward some object–within the context of marketing, usually a brand or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumer will react to the object.
Attitude
These are used to understand and measure attitudes. The basic model has three elements—attributes, beliefs, and weights.
Multi-attribute model
The first, salient beliefs, is a reference to the beliefs a person might gain during the evaluation of a product or service. Second, object-attribute linkages, is an indicator of the probability of importance for a particular attribute associated with an attitude object. Evaluation, the third component, is a measurement of importance for the attribute. The goal of this model is to reduce overall attitudes into a score.
Fishbein model
An approximation of reality. Our brain attempts to make sense out of the stimuli to which we are exposed.
Perception
Simply the act of focusing on a particular object for a period of time while simultaneously ignoring irrelevant information that is also occurring
Selective awareness
A tendency to interpret information in ways which reinforce existing attitudes or beliefs.
Selective distortion
In relating to the mind, this is the process whereby people more accurately remember messages that are closer to their interests, values and beliefs, than those that are in contrast with their values and beliefs, selecting what to keep in the memory, narrowing the information flow.
Selective retention
Information is organized in the brain in associative networks. These neurological structures consist of nodes (concepts) that are linked to other nodes in complex networks of interconnectivity, each piece of information strongly or weakly connected to many other pieces of information. When we think or remember things, it activates whole patterns across the network. These networks are structured in order to best enable us to recall information efficiently to help us respond and act in different situations.
Memory
Consists of sensory memory that has been transmitted a step further to process meaning. It is also short-lived, lasting under a minute, but can be kept in short-term memory by repetition. There are a finite number of pieces of information that can be stored in short-term memory at any one time.
Short-term memory
Consists of information that has been rehearsed in short-term memory and then transmitted a step further. It is stored for a long time and can be retrieved as needed. The capacity of long-term memory is thought to be limitless.
Long-term memory
Involves a change in the content or organization of long term memory and/or behavior.
Learning
The most extensively used type of conditioning that companies engage to influence our buying behavior. Classical conditioning differs from its counterpart in the sense that liking a product comes before trying it.
Classical conditioning
Trialing the product precedes liking it.
Operant conditioning
This theory refers to the way consumers learn about the product through analysis and evaluation.
Cognitive learning theory
This theory refers to the way consumers learn about the product through behavior repetition. Little to no cognitive activities are employed
Behavioral learning theory
Individual differences in characteristic patterns of thinking, feeling, and behaving.
Personality
Includes implicit theories about the world we live in that are largely shared by the members of our society.
Culture
Dictate what is acceptable and unacceptable behavior
Values
Has a powerful influence over people and their behavior. This is especially true in the fields of marketing and advertising. The choice of language to convey specific messages with the intention of influencing people is vitally important.
Language
Values resulting from a a specific group which effect specific consumer behavior.
Cultural values
Facial expressions, eye contact, smile, hands, gestures, posture, and position. Developing these skills will help you understand what your customers want, so you can offer them the most suitable products and services.
Nonverbal communication
May be defined as a group of people in the organization who has a different culture which differentiates them from the culture in which they are currently working.
Subculture
A group of two or more persons related by blood, marriage, or adoption who reside together. Nuclear and extended are the two types.
Family
Single 1, young couples, full nest 1, single parent 1, middle aged single, empty nest 1, delayed full nest 1, full nest 2, single parent 2, empty nest 2, and older single.
Household life cycle (HLC)
A status hierarchy in which individuals and groups are classified on the basis of esteem and prestige acquired mainly through economic success and accumulation of wealth. May also refer to any particular level in such a hierarchy.
Social class
Items one buys because they evoke a sense of financial achievement beyond what is realistic. This type of purchase is intended to impress – you want to be seen buying it.
Aspirational purchases
A well-known individual or organization that has the ability to influence public opinion on a particular subject matter.
Opinion leader
Usually refers to an individual who is a market participant with a great deal of knowledge and connections, thus having a trusted opinion on market events or the likelihood of success.
Market mavens
A group to which an individual or another group is compared. Sociologists call any group that individuals use as a standard for evaluating themselves and their own behavior this.
Reference group
Having pleasing qualities or properties.
Desirability
Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.
Degree of affiliation
Typically a small social group (small-scale society) whose members share close, personal, enduring relationships. These groups are marked by members’ concern for one another, in shared activities and culture. Examples include family, childhood friends, and highly influential social groups.
Primary groups
Interact on a less personal level than in a primary group. Since these are established to perform functions, people’s roles are more interchangeable. This type of group is one you have chosen to be a part of. They are based where many people can meet close friends or people they would just call acquaintances. These groups are groups in which one exchanges explicit commodities, such as labor for wages, services for payments, etc. Examples of these would be employment, vendor-to-client relationships, etc.
Secondary groups
The degree of information processing and the amount of importance a consumer attaches to a product while purchasing it. In other words, it shows how involved the customer is towards a product personally, socially and economically.
Involvement
A situation in which the consumer is motivated to learn the material”. Consumers get into this category when they are looking for something that are relevantly important to them or they are interested in the product which has a various choice in the market.
High-involvement learning
Consumers are more likely to believe something simply because of repeated exposure when they lack the motivation or opportunity to scrutinize the validity of the message. Most of the times, consumers buy these products automatically. Examples of this include products are matchbox, toothpaste, snacks, etc.
Low-involvement learning
These refer to the sources of information within the organization. Can also refer to sources within an individual’s past experience that is available for recall.
Internal information sources
These refer to the sources of information without the organization. Can also refer to sources without an individual’s past experience that is thus not available for recall.
External information sources
The complete set of brands available to a consumer.
Complete set
The brands of which a consumer is aware; normally, this set will be less than the total (complete) set of brands.
Awareness set
A group of relevant brands that a prospective consumer is favorably familiar with when they are thinking about making a purchase. The goal of many marketing campaigns is to establish their business brand firmly among the evoked set of products considered by most target consumers when making a purchase decision.
Consideration (evoked) set
Neuroscientists emphasize that emotions play a central role in our decision-making-progress: Neuroscientist Antonio Damasio conducted a study which found that people who were unable to generate emotions due to medical conditions had trouble making decisions.
Emotional choices
Involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparison are made at the time of choice.
Attitude-based choices
Requires the knowledge of the specific attributes of the alternatives at the time the choice is made, and it involves attribute-by-attribute comparisons across brands. This is an effortful and time-consuming process. It also tends to produce a more nearly optimal decision.
Attribute-based choice
When the customer may be unsatisfied or unsure of their purchasing decisions; they may rethink their decision in the post-purchase stage.
Post-purchase dissonance
Relates to the physical functioning of the product.
Instrumental performance
Relates to the aesthetics or image-enhancement performance.
Symbolic performance
Refers to a situation where one business makes a commercial transaction with another.
Business-to-business (B2B) markets
A system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.
Supply chain
Customer willingness to purchase a product or service at a given price.
Product demand
An economic term describing the demand for a good/service resulting from the demand for an intermediate or related good/service. It is a demand for some physical or intangible thing where a market exists for both related goods and services in question.
Derived demand
The phenomenon that a variable moves toward its desired value faster and faster with respect to time.
Acceleration effect
A situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price.
Inelastic demand
Series of choices made by a consumer prior to making a purchase that begins once the consumer has established a willingness to buy. The consumer must then decide where to make the purchase, what brand, model, or size to purchase, when to make the purchase, how much to spend, and what method of payment will be used. The marketer attempts to influence each of these decisions by supplying information that may shape the consumer’s evaluation process.
Buying decisions
The purchasing or reordering of supplies on a routine basis from a supplier who is on an approved list.
Straight rebuy
Suppliers with whom the buying organization has not had dealings previously and therefore consider risky.
Out suppliers
A buying situation in which an individual or organization purchase goods that have been purchased previously but changes either the supplier or some other elements of the previous order. In this the buyer wants to modify product specifications, terms, prices, suppliers.
Modified rebuy
A purchase decision that has not been done previously.
New purchase
Also called decision-making unit (DMU), brings together “all those members of an organization who become involved in the buying process for a particular product or service”.
Buying center
One who consumes or employs a good or service to obtain a benefit or to solve a problem, and who may or may not be the actual purchaser of the item.
Users
The person who first suggests or thinks of the idea of buying the particular product or service.
Initiator
A person whose views influence other members of the buying center in making the final decision.
Influencers
The person(s) who controls information or access, or both, to decision makers and influencers. It also is used to indicate the individual who controls decision making by controlling the purchase process.
Gatekeepers
The person who ultimately determines any part of or the entire buying decision—whether to buy, what to buy, how to buy, or where to buy.
Deciders
The standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.
North American Industry Classification System (NAICS)
A company that produces parts and equipment that may be marketed by another manufacturer.
Original equipment manufacturer (OEM)
Purchases made by an end user, which is a person or organization that actually uses a product, as opposed to the person or organization that authorizes, orders, procures, or pays for it.
End user purchases
Items of considerable value and durability, other than real estate or software, that are used to provide a service or to make, market, keep or transport products.
Capital equipment
Items are used in production and plant maintenance and can be items such as maintenance supplies, spare parts, and consumables used in the production process.
Materials, repairs, and operational (MRO)
A company or individual (merchant) that purchases goods or services with the intention of selling them rather than consuming or using them. This is usually done for profit (but could be resold at a loss).
Resellers
A means by which organizational policies are enforced, as well as a mechanism for determining policy.
Government
Establishment, foundation, or organization created to pursue a particular type of endeavor, such as banking by a financial institution. Also, consistent and organized pattern of behavior or activities (established by law or custom) that is self-regulating in accordance with generally accepted norms.
Institutions
A type of bidding solicitation in which a company or organization announces that funding is available for a particular project or program, and companies can place bids for the project’s completion.
Request for proposal (RFP)
Consumers may be less satisfied with the choices they make if their options are presented one at a time rather than all at once.
Product choice
A company that consistently receives competitive preference for scarce resources from a critical mass of suppliers.
Supplier choice
Related to ‘trust’, something that is difficult to measure on an individual basis. Such ‘trust’ in marketing terms must be formed pre-purchase in the opinion of the customer, in order for the post-purchase realization of this to be perceived.
Reliability
The individual factors to the consumers that strongly influences their buying behaviors. These factors vary from person to person that results in a different set of perceptions, attitudes and behavior towards certain goods and services.
Personal factors
Purchasing decisions, especially big-ticket expenditures, may be influenced by the organization’s strategies, priorities, and performance.
Organizational factor
The concept of businesses electronically communicating information that was traditionally communicated on paper, such as purchase orders and invoices. Technical standards for EDI exist to facilitate parties transacting such instruments without having to make special arrangements.
Electronic data interchange (EDI)
A fully capable electronic web application for purchasing goods and services. This allows shoppers to browse online catalogs, add items to a shopping cart and submit the requisition electronically.
E-procurement
A marketing term referring to the aggregating of prospective buyers into groups, or segments, that have common needs and respond similarly to a marketing action. This enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
Market segmentation
Result of efforts to make a product or brand stand out as a provider of unique value to customers in comparison with its competitors.
Differentiation
A common strategy when you serve customers in a particular area, or when your broad target audience has different preferences based on where they are located. This marketing approach is common for small businesses that serve a wide demographic customer base in a local or regional territory.
Geographic segmentation
Market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education.
Demographic segmentation
Involves dividing your market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers. This segmentation is advantageous because it allows you to engage in product design and marketing in a focused manner.
Psychographic segmentation
Divides consumers into groups according to their usage, loyalties or buying response to a product. Put simply, behavioral segmentation looks at what a consumer does.
Behavioral segmentation
A proprietary research methodology used for psychographic market segmentation. This is a way of viewing people on the basis of their attitudes, needs, wants, beliefs and demographics. By using psychology to analyze and predict consumer preferences and choices, this system constructs a link between personality traits and buying behavior. The system identifies current and future opportunities by segmenting the consumer market place on the basis of the personality traits that drive consumer behavior.
VALS Framework
Involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments consisting of the customers whose needs and desires most closely match your product or service offerings. It can be the key to attracting new business, increasing your sales, and making your business a success.
Target marketing
The segment of a marketplace a business believes will give it the best chance to sell, though it may not be the largest segment of a marketplace.
Primary target markets
Includes future primary buyers, those buying at a high rate within a small segment and people who influence primary buyers. Their characteristics and buying behaviors usually differ from those of the primary market.
Secondary target markets
The group of consumers who want to wait and see.
Tertiary target markets
Occurs when the marketer ignores the apparent segment differences that exist within the market and uses a marketing strategy that is intended to appeal to as many people as possible.
Undifferentiated target marketing
An organization that adopts a this chooses to focus its marketing efforts on only one very defined and specific market segment. Accordingly, only one marketing mix is developed.
Concentrated target marketing
Tailoring a particular product to the specific needs of an individual customer. This is generally practiced by companies whose products are very expensive or unique, such as custom home builders or airplane manufacturers, because these products can be designed to suit the special needs of each customer. Since the company adapts its product and marketing program with such a high degree of specificity, this is considered to be the ultimate form of target marketing.
Customized (one-to-one) marketing
Refers to the place that a brand occupies in the mind of the customer and how it is distinguished from products from competitors.
Positioning
A deliberate branding plan or process that operates on the symbolic levels of consumer consciousness, where meanings and associations – even of individual words – really hold weight. It is built on business data and seeks to compose the precise chain of words to balance concepts of differentiation, distinction, and similarity in a unified brand-narrative. It is a long-term effort to solidify the identity of a company, and its products or services, in a unique space within the minds of the target audience. It is an organized attempt for a brand to set itself apart from the crowd and influence the way their target audience perceives them.
Positioning strategy
A diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a company’s product, product line, or brand is displayed relative to their competition. Also known as market maps, usually have two dimensions but can be multi-dimensional; they can be used to identify gaps in the market and potential partners or merger targets as well as to clarify perceptual problems with a company’s product.
Positioning strategy
Refers to a major change in positioning for the brand/product. To successfully reposition a product, the firm has to change the target market’s understanding of the product. This is sometimes a challenge, particularly for well-established or strongly branded products.
Repositioning
