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
Global dreamers
Positive toward international brands, less concerned about corporate responsibility
Anitglobals
Negative toward international brands
Global agnostics
Don’t base decision on global brand names.
Culture
A complex whole that includes knowledge, belief, art, law, morals and customs acquired by humans of a society
Norms
Rules that specify or prohibit certain behaviors in specific situations
Norms are derived from cultural values which are…
Held beliefs that affirm what is desirable
Sanctions
Social disapproval or banishment from the group
Variations in cultural values
Other oriented values
Environment oriented
Self oriented
Other oriented values
Relationship between individual and groups
Individual/collective
Youth/age
Extended/limited family
Masculine/ feminine
Competitive/ cooperative
Diversity/ uniformity
Environment oriented values
Relationship to its economic, and physical environment
Cleanliness Performance/status Tradition/change Risk taking/security Problem solving/ fatalistic
Self-oriented values
Approaches to life that the individual members of society find desirable
active/passive Sensual gratification/abstinence Material/nonmaterialistic Hard work/leisure Postponed/immediate gratification Religious/secular
Variations in nonverbal communications
Time Space Symbols Relationships Agreements Things Etiquette
Monochromic time perspective
Do one thing at a time. Orientation toward the present and future
Polychronic time perspective
Do many things at once. Presentation towards the present and the past
The number 7 is unlucky in what countries?
Ghana, Kenya, Singapore
Guanxi
Learn it
Demographics
Describes a population in terms of its size structure (age, income, education) and distribution (the physical location of individuals)
Purchasing power parity
How much an individual has to spend based on their income and the cost of a standard market basket of products bought in each country
Glocalization
Adapting global products to local considerations
Cultural beliefs
Widely held beliefs that affirm what is desirable
Voluntary simplicity
Consumers efforts to reduce their reliance on consumption and material possessions
Creative class
Group of people that embrace change
Enviropreneurial marketing
Environment friendly marketing practices by a firm to achieve a competitive differentiation
Cultural creative
Concerned wth self actualization, self expression and like things that are foreign and exotic
Four evolving American value systems
Green marketing
Cause related marketing
Gay consumers
Gender based marketing
Green marketing
Creating products who’s disposal is less harmful to the environment
Creating products who have a positive impact on the environment
tying the purchase of a product to an environmental cause
Why are people skeptical about green marketing
Expensive
Considered low quality
Not trustworthy
Green washing
A firm lies about environmental benefits of their product
Eco centrists/ respectable stewards
Highly committed to environment and will pay more for eco friendly
Proud traditionalist and frugal earth mothers
Some motivated by efficiency, practicality and family
Eco villains
Very dismissive of environmental concerns
FTC changed laws for green marketing to..
Focus on qualifying claims
Crack down on third party certifications and seals
Cause related marketing
Marketing that ties a company and its products to a cause with the goal of improving sales and image while providing benefits to the cause
Gender identity
Traits of femininity and masculinity
Ascribed role
An attribute over which the individual has no control of
Achievement role
Performance criteria over which the individual has some degree of control
Female market segments
Traditional housewife
Trapped housewife
Trapped working woman
Career working woman
Marketing to gay consumers
16 million people are gay
Highly attractive segment
Generation(age cohert)
Group of people who have experience a common social, political, historical, and economic environment
Cohort analysis
Process of describing behaviors of an age group and predicting its future mindsets
Pre depression
Prior to 1930
Depression
1930-1945
Baby boom
1946-1964
Generation Z
1995-2009
Generation Y
1977- 1994
Generation x
1965-1976
What generations are apart of the mature market
Pre depression
Depression
Baby boom
The Coleman rainwater social class hierarchy classes
Upper Americans
Middle Americans
Lower Americans
Dimensions of the upper class
Upper-upper
Inherited wealth. Capitol S society
Lower upper
New social elite corporate leadership
Upper-middle
College graduate managers, physician
Dimensions of the middle class
Middle class
Average pay white collar workers, high school teachers
Working class
Average pay blue collar workers, assembly worker
Lower Americans dimensions
Upper-lower
Living standard just above poverty, janitor
Lower-lower
On welfare, poverty stricken, unemployed
