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Marketing: An Introduction
11th edition, by Gary Armstrong and Philip Kotler
118
Marketing
Undergraduate 3
02/25/2014

Additional Marketing Flashcards

 


 

Cards

Term
Consumer Buyer Behavior
Definition
The buying behavior of final consuemrs- individuals and households that buy goods and services for personal consumption.
Term

Consumer Market

 

Definition
All the individuals and households that buy or acquire goods and services for personal consumption.
Term
Inputs/Stimuli in the Black Box
Definition

Marketing Mix- 4 P's

Buyer's Environment: economic, technological, social, and cultural

Term
Culture
Definition
set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.
Term
Examples of Subcultuers
Definition
nationalities, religions, racial groups, geographic regions
Term
Subculture
Definition
A group of people with shared value systems based on common life expereinces and situations.
Term
Multicultural Marketing
Definition
practice of including ethnic themes and cross-cultural perspectives within their mainstream marketing.
Term
Social Class
Definition
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors.
Term
Group
Definition
Two or more people who interact to accomplish individual or mutual goals.
Term
Upper Uppers
Definition

1 percent

social elite

inherited wealth

give large sums to charity, own more than one house, send children to finest schools

Term

Lower Uppers

Definition

2 percent

Earned high income through ability,

active in social and civic affairs and buy expensive homes, educations, and cars

Term
Upper Middles
Definition

12 percent

Professionals, Independent Business owners

believe in education, are joiners and highly civic minded

Term
Middle Class
Definition

32 percent

Average pay white and blue collar workers

buy popular products to keep up with trends.

Better living = nice neighborhood, homes, and schools

Term
Working Class
Definition

38 percent

lead a working class lifestyle

depend heavily on relatives for advice on purchases, assistance in times of need

Term
Upper Lowers
Definition

9 percent

working poor

living standard just above poverty

lack education

paid poorly for unskilled work

Term
Lower Lowers
Definition

7 percent

visibly poor

often poorly educated unskilled laborers

often out of work

depend on public assistance

Term
Word of Mouth Influence
Definition
personal words and recomendations of trusted friends, and other consumers on buying behavior
Term
Opinion Leaders
Definition
A person within a reference group who, because of special skills, knowldege, personality, or other characteristics, exerts social influence on others.
Term
Buzz Marketing
Definition
enlisting or creating opinion leaders to serve as brand ambassadors to spread the word about a company's products
Term
Role
Definition
consists of the activities people are expected to perform according to the peope around them.
Term
Lifestyle
Definition
A person's pattern of living as expressed in his or her activities, interests, and opinions.
Term
Personality
Definition
The unique psychological characteristics that distinguish a person or group.
Term
Brand Personality
Definition
specific mix of human traits that may be attributed to a particular brand.
Term
Sigmund Freud (on motivation)
Definition
people are largely unconscious about the real psychological forces shaping their behavior
Term
Motivation Research
Definition
qualitative research designed to probe consumers' hidden, subconscious motivations.
Term
Abraham Maslow (on motivation)
Definition

human needs are arranged in a hierarchy

the most pressing at the bottom to the least pressing at the top

Term

Components of

Maslow's Hierarchy

Definition

Physiological Needs

Safety Needs

Social Needs

Esteem Needs

Self- actualization Needs

Term
Perception
Definition
process by which people select, organize, and interpret information to form a meaningful picture of the world.
Term
3 Perception Processes
Definition

Selective Attention

Selective Distortion

Selective Retention

Term
Selective Attention
Definition
tendency for people to screen out most of the information to which they are exposed.
Term
Selective Distortion
Definition
tendency of people to interpret information in a way that will support what they already believe.
Term
Selective Retention
Definition
consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands
Term
Belief
Definition
A descriptive thought a person holds about something
Term
Attitude
Definition

A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea.

(hard to change, company should fit into existing attitudes)

Term

Buyer Decision Process

5 stages

Definition

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Postpurchase Behavior

Term

Information Search

Source Types

Definition

Personal: family

Commercial: advertising

Public: Internet Database

Experiential: hands on, free trial

Term
Cognitive Dissonance
Definition
Buyer discomfort caused by postpurchase conflict.
Term
New Product
Definition
A good, serviec, or idea that is perceived by some potential suctomers as new.
Term
Adoption Process
Definition
the mental process through which an individual passes from first hearing about an innovation to final adoption.
Term
Adopter Categories
Definition

Innovators: 2.5%- venturesome

Early Adopter:13.5% opinion leader

Early Majority: 34% deliberate

Late Majority: 34% skeptical

Laggards:16% tradition bound

Term

Relative Advantage

 

Definition
degree to which innovation appears superior to existing products.
Term
Compatibility
Definition
degree to which the innovation fits the values and experiences of potential consumers.
Term
Complexity
Definition
degree to which the innovation is difficult to understand or use.
Term
Divisibility
Definition
degree to which the innovation may be tried on a limited basis.
Term
Communicability
Definition
degree to which the results of using the innovation can be observed or described to others.
Term
Business Buying Behavior
Definition
Buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others.
Term
Business Buying Process
Definition
decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose amongalternative suppliers and brands.
Term
Business Markets
Definition

involve far more dollars and items has far fewer but far larger buyers

inelastic, more fluctuating demands

involves more decision participants

more professional purchasing effort

more complex buying decisions

longer and more formalized

buyer and seller are more dependent on one another

Term
Derived Demand
Definition
business demand for products and services that ultimately derives from the demand for consumer goods
Term
Supplier Development
Definition
systematic development of networks of supplier partners to ensure an apppropriate and dependable supply of products
Term
Straight rebuy
Definition
buyer reorders something without modifications.
Term
Modified rebuy
Definition
buyer wants to modify product specifications, prices, terms, or suppliers.
Term
New Task
Definition
buyer purchases a product or service for the first time.
Term
System Selling/ Solution Selling
Definition
Buying a packagd solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
Term
Buying Center
Definition
all the individuals and units that play a role in the purchase decision-making process.
Term
Influences on Business Buyers
Definition

Environmental

Organizational

Interpersonal

Individual

Term
Product Value Analysis
Definition
analyzing a product's or service's components to determine if they can be redesigned and made more effectively and efficiently to provide greater value.
Term
Intermarket/Cross-Market Segmentation
Definition
forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries.
Term

Requirements for Effective Segmentation

:Markets must be...

Definition

Measurable

Accessible

Substantial

Differentiable

Actionable

Term
Measurable
Definition
size, purchasing power, and profiles of the segments can be measured
Term
Accessible
Definition
market segments can be effectively reached and served
Term
Substantial
Definition

market segments are large or profitable enough to serve.

 

(The segment should be the largest possible homogenous group)

Term
Differentiable
Definition
segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
Term
Actionable
Definition
Effective programs can be designed for attracting and serving the segments.
Term

Evaluating Market Segments

for a Firm

 3 factors:

Definition

segment size and growth

segment structural attractiveness

company objectives and resources

Term

segment may be

less attractive if...

Definition

1. already contains many strong and aggressive competitors

2. easy for new entrants

3. relative power of buyers

4. contains powerful suppliers who can control prices or reduce the quality or quantity of ordered goods and services

Term
Undifferentiated Mass Marketing
Definition
a firm ignores market segment differences and goes after the whole market with one offer
Term
Differentiated Marketing
Definition
firm targets several market segments and designs separate offers for each
Term
Concentrated (Niche) Marketing
Definition
firm goes after a large share of one or a few segments or niches.
Term
Micromarketing
Definition
tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments
Term
Local Marketing
Definition
tailoring brand and promotions to the needs and wants of local customers: cities, neighborhoods, and specific stores
Term
Product Position
Definition
way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products
Term
Competitive Advantage
Definition
advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices
Term
Marketers Differentiate on....
Definition

Product

Services

Channels

People

Image

Term
Product Differentiation
Definition
brands differentiated on features, performance, style, design
Term
Services Differentiation
Definition
differentiation through speedy, convenient, or careful delivery
Term
Channel Differentiation
Definition
differentiation through the design of a channel's coverage, expertise, and performance
Term
People Differentiation
Definition
differentiation through hiring and training better people than competitors
Term
Image Differentiation
Definition
differentiation based on developing a strong and distinctive image
Term
Rosser Reeves
Definition
a company should develop a unique selling position (USP) for each brand
Term
Unique Selling Position
Definition
each brand should pick an attribute and tout itself as number one
Term
Differentiation Types
Definition

Important: difference delivers a highly valued benefit to customers

Distinctive: Comany offers it in a distinctive way, unlike competitors

Superior: superior to other ways that customers might obtain the benefit

Communicable: communicable and visible to buyers

Preemptive: competitors cannot easily copy the difference

Affordable: buyers can afford to pay for the difference

Profitable: company can introduce the difference profitably

Term
Value Proposition
Definition
full positioning of a brand- the ful mix of benefits on which it is positioned
Term
Possible Value Propositions
Definition

More for More

More for the same

More for less

The same for less

Less for much less

Term
Positioning Statement
Definition
summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).
Term
What is the buyer really buying?
Definition
core customer value
Term
Actual Product
Definition

brand name

features

quality level

packaging

design

Term
Augmented Product
Definition

Delivery and Credit

After-sale Service

Product Support

Waranty

Term
Consumer Products
Definition

product bought by final consumers

for personal consumption

Term
Convenience Product
Definition
SP that customers usually buy frequently, immediately, and with minimal comparison and buying effort
Term
Shopping Product
Definition
CP that the customer, in the process of selecting and purchasig, usually compares on such attributes as suitability, quality, price, and style
Term
Specialty Product
Definition
CP with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
Term
Unsought Product
Definition
CP that the consumer either does not know about or knows about but does not normally consider buying
Term
Industrial Products
Definition
product bought by individuals and organizations for further processing or for the use in conducting a business
Term

Industrial Products

3 groups

Definition

Materials and Parts: raw materials, manufactured materials and parts, ex. wheat, cotton, livestock, iron, yarn, cement

Captial Items: industrial products aiding in buyer's productions process, ex. buildings, offices, generators, elevators, machines

Supplies and Services: operating supplies and maintenance item, ex. lubricants, coal, paper, pencils,paint, nails, brooms

Term
Organization Marketing
Definition
activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization
Term
Person Marketing
Definition
activities undertaken to create, maintain, or change attitudes or behaviors toward particular people
Term
Place Marketing
Definition
activities undertaken to create, maintain, or change attitudes or behavior towards a particular place
Term
Social Marketing
Definition
Use of commercial marketing concpets and tools in programs designed to influence individuals' behavior to improve their well-being and that of society
Term
Product Quality
Definition
characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
Term
Develop individual products and services while adding customer value
Definition

quality

features

style and design

Term
Packaging
Definition
designing and producing the container or wrapper for a product
Term
Product Line
Definition
group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
Term

Product Mix

(or product portfolio)

Definition
set of all product lines and items that a particular seller offers for sale
Term
width
Definition
number of product lines
Term
length
Definition

number of items

within a product line

Term
depth
Definition
number of versions offered for each product in the line
Term
consistency
Definition
how closely related the various product lines are in end use, production requirements, distribution channels
Term
Service Profit Chain
Definition
chain that links service firm profits with employee and customer satisfaction
Term
Internal Marketing
Definition
Orienting and motivating customer- contact employees and service-support people to work as a team to provide customer satisfaction
Term
Interactive Marketing
Definition
training service employees in the fine art of interacting with customers to satisfy their needs
Term
Brand Equity
Definition
The differential effect that knowing the brand name has on customer response to the product or its marketing
Term
Line Extension
Definition
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category.
Term
Brand Extension
Definition
Extending an existing brand name to new product categories.
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