Term
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Definition
| The buying behavior of final consuemrs- individuals and households that buy goods and services for personal consumption. |
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Term
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Definition
| All the individuals and households that buy or acquire goods and services for personal consumption. |
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Term
| Inputs/Stimuli in the Black Box |
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Definition
Marketing Mix- 4 P's
Buyer's Environment: economic, technological, social, and cultural |
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Term
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Definition
| set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. |
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Definition
| nationalities, religions, racial groups, geographic regions |
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Definition
| A group of people with shared value systems based on common life expereinces and situations. |
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Definition
| practice of including ethnic themes and cross-cultural perspectives within their mainstream marketing. |
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Definition
| Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors. |
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Definition
| Two or more people who interact to accomplish individual or mutual goals. |
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Term
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Definition
1 percent
social elite
inherited wealth
give large sums to charity, own more than one house, send children to finest schools |
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Term
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Definition
2 percent
Earned high income through ability,
active in social and civic affairs and buy expensive homes, educations, and cars |
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Definition
12 percent
Professionals, Independent Business owners
believe in education, are joiners and highly civic minded |
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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 |
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Definition
38 percent
lead a working class lifestyle
depend heavily on relatives for advice on purchases, assistance in times of need |
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Definition
9 percent
working poor
living standard just above poverty
lack education
paid poorly for unskilled work |
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Definition
7 percent
visibly poor
often poorly educated unskilled laborers
often out of work
depend on public assistance |
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Term
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Definition
| personal words and recomendations of trusted friends, and other consumers on buying behavior |
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Definition
| A person within a reference group who, because of special skills, knowldege, personality, or other characteristics, exerts social influence on others. |
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Term
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Definition
| enlisting or creating opinion leaders to serve as brand ambassadors to spread the word about a company's products |
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Term
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Definition
| consists of the activities people are expected to perform according to the peope around them. |
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Definition
| A person's pattern of living as expressed in his or her activities, interests, and opinions. |
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Definition
| The unique psychological characteristics that distinguish a person or group. |
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Term
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Definition
| specific mix of human traits that may be attributed to a particular brand. |
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Term
| Sigmund Freud (on motivation) |
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Definition
| people are largely unconscious about the real psychological forces shaping their behavior |
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Term
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Definition
| qualitative research designed to probe consumers' hidden, subconscious motivations. |
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Term
| Abraham Maslow (on motivation) |
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Definition
human needs are arranged in a hierarchy
the most pressing at the bottom to the least pressing at the top |
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Term
Components of
Maslow's Hierarchy |
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Definition
Physiological Needs
Safety Needs
Social Needs
Esteem Needs
Self- actualization Needs |
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Term
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Definition
| process by which people select, organize, and interpret information to form a meaningful picture of the world. |
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Definition
Selective Attention
Selective Distortion
Selective Retention |
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Term
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Definition
| tendency for people to screen out most of the information to which they are exposed. |
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Definition
| tendency of people to interpret information in a way that will support what they already believe. |
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Term
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Definition
| consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands |
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Definition
| A descriptive thought a person holds about something |
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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) |
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Term
Buyer Decision Process
5 stages |
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Definition
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior |
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Term
Information Search
Source Types |
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Definition
Personal: family
Commercial: advertising
Public: Internet Database
Experiential: hands on, free trial |
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Term
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Definition
| Buyer discomfort caused by postpurchase conflict. |
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Term
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Definition
| A good, serviec, or idea that is perceived by some potential suctomers as new. |
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Definition
| the mental process through which an individual passes from first hearing about an innovation to final adoption. |
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Term
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Definition
Innovators: 2.5%- venturesome
Early Adopter:13.5% opinion leader
Early Majority: 34% deliberate
Late Majority: 34% skeptical
Laggards:16% tradition bound |
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Definition
| degree to which innovation appears superior to existing products. |
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Definition
| degree to which the innovation fits the values and experiences of potential consumers. |
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Definition
| degree to which the innovation is difficult to understand or use. |
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Definition
| degree to which the innovation may be tried on a limited basis. |
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Definition
| degree to which the results of using the innovation can be observed or described to others. |
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Term
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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. |
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Term
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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. |
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Term
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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 |
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Term
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Definition
| business demand for products and services that ultimately derives from the demand for consumer goods |
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Term
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Definition
| systematic development of networks of supplier partners to ensure an apppropriate and dependable supply of products |
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Definition
| buyer reorders something without modifications. |
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Definition
| buyer wants to modify product specifications, prices, terms, or suppliers. |
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Term
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Definition
| buyer purchases a product or service for the first time. |
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Term
| System Selling/ Solution Selling |
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Definition
| Buying a packagd solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation. |
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Term
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Definition
| all the individuals and units that play a role in the purchase decision-making process. |
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Term
| Influences on Business Buyers |
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Definition
Environmental
Organizational
Interpersonal
Individual |
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Term
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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. |
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Term
| Intermarket/Cross-Market Segmentation |
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Definition
| forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries. |
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Term
Requirements for Effective Segmentation
:Markets must be... |
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Definition
Measurable
Accessible
Substantial
Differentiable
Actionable |
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Term
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Definition
| size, purchasing power, and profiles of the segments can be measured |
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Term
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Definition
| market segments can be effectively reached and served |
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Term
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Definition
market segments are large or profitable enough to serve.
(The segment should be the largest possible homogenous group) |
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Term
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Definition
| segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. |
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Term
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Definition
| Effective programs can be designed for attracting and serving the segments. |
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Term
Evaluating Market Segments
for a Firm
3 factors: |
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Definition
segment size and growth
segment structural attractiveness
company objectives and resources |
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Term
segment may be
less attractive if... |
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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 |
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Term
| Undifferentiated Mass Marketing |
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Definition
| a firm ignores market segment differences and goes after the whole market with one offer |
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Term
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Definition
| firm targets several market segments and designs separate offers for each |
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Term
| Concentrated (Niche) Marketing |
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Definition
| firm goes after a large share of one or a few segments or niches. |
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Term
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Definition
| tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments |
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Term
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Definition
| tailoring brand and promotions to the needs and wants of local customers: cities, neighborhoods, and specific stores |
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Term
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Definition
| way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products |
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Term
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Definition
| advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices |
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Term
| Marketers Differentiate on.... |
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Definition
Product
Services
Channels
People
Image |
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Term
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Definition
| brands differentiated on features, performance, style, design |
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Term
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Definition
| differentiation through speedy, convenient, or careful delivery |
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Term
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Definition
| differentiation through the design of a channel's coverage, expertise, and performance |
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Term
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Definition
| differentiation through hiring and training better people than competitors |
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Term
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Definition
| differentiation based on developing a strong and distinctive image |
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Term
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Definition
| a company should develop a unique selling position (USP) for each brand |
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Term
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Definition
| each brand should pick an attribute and tout itself as number one |
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Term
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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 |
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Term
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Definition
| full positioning of a brand- the ful mix of benefits on which it is positioned |
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Term
| Possible Value Propositions |
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Definition
More for More
More for the same
More for less
The same for less
Less for much less |
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Term
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Definition
| summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference). |
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Term
| What is the buyer really buying? |
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Definition
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Term
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Definition
brand name
features
quality level
packaging
design |
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Term
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Definition
Delivery and Credit
After-sale Service
Product Support
Waranty |
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Term
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Definition
product bought by final consumers
for personal consumption |
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Term
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Definition
| SP that customers usually buy frequently, immediately, and with minimal comparison and buying effort |
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Term
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Definition
| CP that the customer, in the process of selecting and purchasig, usually compares on such attributes as suitability, quality, price, and style |
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Term
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Definition
| CP with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort |
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Definition
| CP that the consumer either does not know about or knows about but does not normally consider buying |
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Term
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Definition
| product bought by individuals and organizations for further processing or for the use in conducting a business |
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Term
Industrial Products
3 groups |
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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 |
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Term
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Definition
| activities undertaken to create, maintain, or change the attitudes and behaviors of target consumers toward an organization |
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Term
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Definition
| activities undertaken to create, maintain, or change attitudes or behaviors toward particular people |
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Term
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Definition
| activities undertaken to create, maintain, or change attitudes or behavior towards a particular place |
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Term
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Definition
| Use of commercial marketing concpets and tools in programs designed to influence individuals' behavior to improve their well-being and that of society |
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Term
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Definition
| characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs |
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Term
| Develop individual products and services while adding customer value |
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Definition
quality
features
style and design |
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Term
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Definition
| designing and producing the container or wrapper for a product |
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Term
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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 |
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Term
Product Mix
(or product portfolio) |
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Definition
| set of all product lines and items that a particular seller offers for sale |
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Term
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Definition
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Definition
number of items
within a product line |
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Definition
| number of versions offered for each product in the line |
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Definition
| how closely related the various product lines are in end use, production requirements, distribution channels |
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Definition
| chain that links service firm profits with employee and customer satisfaction |
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Definition
| Orienting and motivating customer- contact employees and service-support people to work as a team to provide customer satisfaction |
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Definition
| training service employees in the fine art of interacting with customers to satisfy their needs |
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Definition
| The differential effect that knowing the brand name has on customer response to the product or its marketing |
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Term
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Definition
| Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category. |
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Definition
| Extending an existing brand name to new product categories. |
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