Test One (1-4) Flashcards
Aspects regarding understanding consumer behavior (4)
Complex process
Firms understand the consumer
Marketing decisions impact the consumer
Ethical issues of consumer
Auxiliary service*
A service of a service
Picking up and dropping off a car for free
Applications of consumer behavior
Marketing strategy (knowing consumer behavior helps you be more successful as a marketer)
Regulatory policy
Social marketing
Informed individuals
Social marketing
Application of marketing strategies to alter behaviors that have a positive effect on the society
(Reduce smoking, recycling)
Customer value
The difference between all the benefits derived from a total product and all the costs of acquiring those benefits
A FIRM SHOULD CONSIDER VALUE FROM A CUSTOMERS PERSPECTIVE
Marketing strategy is formulated in terms of the marketing mix… what’s the mix?
Product features, price, communications, distribution, services
What is a total product?
Product features Price Communications Distribution Services
What is involved in the market analysis component?
The consumers (research) The company (know their own capability to meet customer needs) The competitors The conditions (state of economy, environment, gov regulations, technology)
4 questions a firm must ask themselves about their competitors?
1) if we succeed who will we hurt?
2) who has strength to respond?
3) will they respond?
4) is our strategy strong enough to handle backlash?
Market segmentation define
A portion of a larger market whose needs differ somewhat from the larger market
4 steps of market segmentation
Identify product related need sets
Grouping customers with similar need sets
Describing each group
Selecting an attractive segment to serve
Need set define
Most products satisfy more than one need
Target market
Segment of the larger market on which we focus our marketing effort
Behavioral targeting
When online activity is tracked and specific banner ads are customized base on that activity
How will we provide superior customer value to our target markets?
Marketing strategy
Product
Anything a consumer acquires to meet a perceived need
Marketing communications
Includes advertising, sales force, public relations, packaging
Consumer cost
Everything the consumer must give up in order to receive the product
Distribution
Having the product available where target customers can buy it
Communications strategy must answer…
Who exactly do we want to communicate with?
What effect do we want our communications have on the target market?
What message will achieve the desired effect on our audience?
What media should we use to reach the audience?
When should we communicate with the audience?
Outcomes of consumer decision
Firm outcomes
Individual outcomes
Society outcomes
Firm outcomes
Product position
-an image of the product in the consumers mind relative to competing products
Sales and profits
Customer satisfaction
Individual outcomes
Need satisfaction
Injurious consumption
Society outcomes
Economic outcomes
- decisions made in U.s Western Europe and Japan have huge impacts
Physical environment outcomes
- Colorado will stock more jackets
Social welfare
-injuries consumption affects this
Altruist (social) marketing
Advertisements that promote social welfare
Steps to creating a satisfied customer
Customer decision Expected value Sales Value delivered Customer satisfaction
External influences on consumer behavior
Culture (most persuasive)
Demographics
Reference groups
Marketing activities
Internal influences
Perception Learning Memory Motives Personality Emotions Attitudes
Self concept
The individuals thought and feelings about themselves
Consumer decisions
Result from perceived problems and opportunities
Consumption has symbolic meaning
Status
Identity
Group acceptance
World citizens (4)
Global citizens
Global dreamers
Anitglobals
Global agnostics
Global citizens
Positive toward international brands and concerned about corporate responsibility
