FINALS Flashcards
helps businesses understand customer behavior, identify market gaps, and improve strategies. It involves collecting and analyzing data to identify market trends and customer needs.
Marketing Research
3 Types of Marketing Research
- Exploratory Research
- Descriptive Research
- Causal Research
Used to define problems and explore solutions. (Example: Conducting a focus group to understand why sales are dropping.)
Exploratory Research
Provides detailed information about market situations. (Example: Surveys to know customer preferences for smartphone features.)
Descriptive Research
Identifies cause-and-effect relationships. (Example: Testing if lowering prices will increase sales.)
Causal Research
2 Types of Data
- Primary Data
- Secondary Data
Data collected directly from customers. (Example: Customer satisfaction surveys.)
Primary Data
Existing data from other sources. (Example: Industry reports.)
Secondary Data
3 Research Methods
- Survey Research
- Observational Research
- Experimental Research
Asking customers about preferences and satisfaction.
Survey Research
Watching how customers interact with products
Observational Research
Testing different approaches to measure effectiveness.
Experimental Research
explains how consumers make purchasing decisions in five stages
Buyer Decision Process
5 Buyer Decision Process
- Problem Recognition
- Information Search
- Evaluation of Alternatives
- Purchase Decision
- Post-Purchase Behavior
Buyer identifies a need. (Example: A person realizes they need a new phone.)
Problem Recognition
Buyer researches possible solutions. (Example: Checking product reviews online.)
Information Search
Comparing options based on features and price. (Example: Comparing different phone models.)
Evaluation of Alternatives
Buyer selects the preferred option. (Example: Choosing a phone based on price and brand.)
Purchase Decision
Reflecting on the purchase. (Example: Feeling satisfied or disappointed with the phone.)
Post-Purchase Behavior
theory explains how human motivation influences buying behavior
Maslow’s Hierarchy of Needs
Basic needs for survival. (Example: Food, water, shelter.)
Physiological Needs
Protection and security. (Example: Buying health insurance.)
Safety Needs
Belonging and relationships. (Example: Buying trendy clothes to fit in.)
Social Needs
Recognition and status. (Example: Buying a luxury car.)
Esteem Needs
Personal growth and fulfillment. (Example: Enrolling in a self-improvement course.)
Self-Actualization
influence how consumers make purchasing decisions
Consumer Behavior Factors
4 Consumer Behavior Factors
- Cultural Factors
- Social Factors
- Personal Factors
- Psychological Factors
Values and traditions. (Example: Filipinos spending more during Christmas.)
Cultural Factors
Influence from family, friends, and social groups. (Example: A teenager buying a phone because their friends have it.)
Social Factors
Age, occupation, lifestyle, and income. (Example: A working mother buying quick-to-prepare meals.)
Personal Factors
Motivation, perception, and beliefs. (Example: Buying organic food for health benefits.)
Psychological Factors
4 Types of Buying Behavior
- Complex Buying Behavior
- Dissonance-Reducing Buying Behavior
- Habitual Buying Behavior
High involvement and significant differences between brands. (Example: Buying a car.)
Complex Buying Behavior
High involvement but minimal brand differences. (Example: Choosing between two similar phones.)
Dissonance-Reducing Buying Behavior
Low involvement and little brand difference. (Example: Buying the same brand of rice.)
Habitual Buying Behavior
Low involvement and little brand difference. (Example: Buying the same brand of rice.)
Variety-Seeking Buying Behavior
Businesses follow a structured process when purchasing products or services
Business Buying Process
8 Business Buying Process
- Problem Recognition
- General Need Description
- Product Specification
- Supplier Search
- Proposal Solicitation
- Supplier Selection
- Order-Routine Specification
- Performance Review
Business identifies a need. (Example: Need for new office chairs.)
Problem Recognition
Business defines requirements. (Example: Chairs should be ergonomic.)
General Need Description
Outlines product details. (Example: Adjustable height and lumbar support.)
Product Specification
Business looks for trusted suppliers. (Example: Comparing furniture suppliers.)
Supplier Search
Requesting quotes from suppliers. (Example: Asking for price and delivery terms.)
Proposal Solicitation
Choosing the supplier. (Example: Selecting the one with the best warranty and price.)
Supplier Selection
Finalizing order details. (Example: Placing a bulk order.)
Order-Routine Specification
Evaluating supplier performance. (Example: Checking if the chairs met expectations.)
Performance Review
refers to the process of buying products and services online.
E-procurement
3 Types of E-Procurement
- Direct Purchase
- Reverse Auction
- Online Trading Exchange
Buying directly from a supplier’s website. (Example: Ordering office supplies from Shopee.)
Direct Purchase
Suppliers compete to offer the lowest price. (Example: Bidding for a large order of office chairs.)
Reverse Auction
Platforms where buyers and sellers meet. (Example: Alibaba for wholesale orders.)
Online Trading Exchange
Advantages of E-Procurement
- Faster transactions
- Cost efficiency
- Easier comparison of suppliers
Challenges of E-Procurement
- Reduced personal interaction
- Potential supplier reliability issues
involves dividing a market into smaller groups with similar needs.
Market Segmentation
4 Types of Market Segmentation
- Geographic Segmentation
- Demographic Segmentation
- Psychographic Segmentation
- Behavioral Segmentation
Based on location. (Example: Selling winter clothing in cold areas.)
Geographic Segmentation
Based on age, gender, income, etc. (Example: Marketing luxury items to high-income earners.)
Demographic Segmentation
Based on lifestyle and values. (Example: Promoting eco-friendly products to environmentalists.)
Psychographic Segmentation
Based on buying habits. (Example: Coffee shops offering loyalty cards.)
Behavioral Segmentation
focuses on delivering value at different levels
Product Strategy
3 types of Product Strategy
- Core Product
- Expected Product
- Augmented Product
Basic benefit. (Example: A phone provides communication.)
Core Product
Basic features customers expect. (Example: High-quality camera and battery life.)
Expected Product
Additional benefits. (Example: Free cloud storage and warranty.)
Augmented Product
help businesses set competitive and profitable prices
Pricing Strategies
5 types of Pricing Strategies
- Cost-Plus Pricing
- Value-Based Pricing
- Penetration Pricing
- Skimming Pricing
- Psychological Pricing
Adding a markup to the production cost. (Example: Product costs ₱100, sold at ₱120.)
Cost-Plus Pricing
Based on perceived value. (Example: Luxury bag priced at ₱50,000.)
Value-Based Pricing
Low initial price to attract customers. (Example: New streaming service at ₱99/month.)
Penetration Pricing
High initial price to maximize early profit. (Example: New iPhone at ₱70,000.)
Skimming Pricing
Pricing to influence perception. (Example: ₱999 instead of ₱1,000.)
Psychological Pricing
creates a unique identity and builds customer trust
Branding
3 Key Elements of Branding
- Logo
- Name
- Design
Represents the company visually. (Example: Nike swoosh.)
Logo
The brand’s identity. (Example: Coca-Cola.)
Name
Consistent style and packaging. (Example: Apple’s minimalist design.)
Design
define the competitive environment
Market Structures
4 Market Structures
- Monopoly
- Oligopoly
- Monopolistic Competition
- Perfect Competition
Single seller dominates. (Example: Meralco in electricity distribution.)
Monopoly
Few large sellers dominate. (Example: Telecom companies.)
Oligopoly
Many sellers with differentiated products. (Example: Clothing brands.)
Monopolistic Competition
Many sellers offering identical products. (Example: Local vegetable markets.)
Perfect Competition
