Marketing H Unit 5

(Perception --> Psychological Factors) Selective attention

"Filtering" to retain certain pieces of information. If you're not paying attention to anything marketers have to work harder to catch it

(Social Factors) Groups

-Different groups of people allow marketers to market easier about interests. -Membership groups are groups that a person belongs to and have a direct influence on them -Reference groups serve as direct or indirect points of comparison or reference in forming a person's attitudes or behavior. -An aspirational group is one to which the individual wishes to belong

Business market structure

-Fewer but larger buyers -Derived demand -Inelastic and fluctuating demand

(Cultural Factors) Subculture

-Group of people with shared value systems based on common life experiences and situations -Uses a total market strategy

Nature of the buying unit

-More decision participants -More professional purchasing effort

Characteristics influencing an innovation's rate of adoption

-Relative advantage is the degree to which the innovation appears superior to existing products. -Compatibility, or the degree to which the innovation fits the values and experiences of potential consumers. -Complexity, or the degree to which the innovation is difficult to understand or use. -Divisibility, or the degree to which the innovation may be tried on a limited basis. -Communicability, or the degree to which the results of using the innovation can be observed or described to others.

Stages in the adoption process

-The first stage is awareness. In this stage, the consumer becomes aware of the new product but lacks information about it. -The second stage is interest, which involves the consumer seeking information about the new product. -The third stage is evaluation, where the consumer considers whether trying the new product makes sense. -The fourth stage is trial. In this stage, the consumer tries the new product on a small scale to improve his or her estimate of its value. -The final stage is adoption where the consumer decides to make full and regular use of the new product.

Stages of business buying behavior

1. Problem recognition 2. General need description 3. Product specification 4. Supplier search 5. Proposal solicitation 6. Supplier selection 7. Order-routine specification 8. Performance review

(Social Factors) Opinion Leaders

A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others; and are referred to as influentials or leading adopters.

(Personal Factors) Occupation

A person's _____ affects the goods and services bought. Marketers try to identify the occupational groups that have an above-average interest in their products and services, some companies specialize in making products for these occupational groups.

(Personal Factors) Economic Situation

A person's economic situation will affect his or her store and product choices. Marketers watch trends in spending, personal income, savings, and interest rates; and choose to target the more or less affluent

(Social Factors) Roles and Status

A person's position in each group can be defined in terms of both role and status. People usually choose products appropriate to their roles and status. Roles and status were clearly separated in the past; but marketers try to change these secondary values (to sell their product).

(Influences on Business Buying Behavior) Individual factors

Age/education, job position, motives, personality, preferences, buying style

Consumer market

All the [final] individuals and households that buy or acquire goods and services for personal consumption

Buying center

All the individuals and units that play a role in the purchase decision-making process

Complex, money, levels, dependent

Business buyers usually face more ______ buying decisions than do consumer buyers. Business purchases often involve large sums of _____, complex technical and economic considerations, and interactions among people at many _____ of the buyer's organization. The buyer and seller are more ______ on each other

Derived demand

Business demand that comes from the demand for consumer goods

(Types of buying situations) New task

Buyer purchases a product or service for the first time

(Types of buying situations) Straight rebuy

Buyer routinely reorders something without any modifications

(Types of buying situations) Modified rebuy

Buyer wants to modify product specifications, prices, terms, or suppliers

(Types of buying situations) Systems(/solutions) selling

Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.

Consumer buying behavior

Buying behavior of final consumers who are the individuals and households that buy goods and services for personal consumption

(Social Factors) Buzz Marketing

Buzz marketing involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company's products.

Problems of E-Procurement

Can affect the customer-supplier relationship Pits suppliers against one another

(Perception --> Psychological Factors) Selective retention

Consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands.

(Buyer's Decision Process -- 2nd step) Information search

Consumers can obtain information from several sources like personal, commercial, public, and experiential sources.

Benefits of E-Procurement

Cuts transaction costs Results in efficient purchasing for both buyers and suppliers Reduces the time between order and delivery Helps an organization keep better track of all purchases Frees buyers from a lot of work and paperwork

(Perception --> Psychological Factors) Selective distortion

Describes the tendency of people to interpret information in a way that will support what they already believe.

(Buyer's Decision Process -- 5th step) Postpurchase behavior

Determining if the consumer is satisfied or dissatisfied with the purchase lies in the relationship between the consumer's expectations and the product's perceived performance. However, all major purchases result in cognitive dissonance, or discomfort caused by postpurchase conflict. Postpurchase customer satisfaction is a key to building profitable customer relationships

(Influences on Business Buying Behavior) Environmental factors

Economy, supply conditions, technology, politics/ regulation, competition, cultures and customs

(Buyer's Decision Process -- 3rd step) Evaluation of alternatives

How consumers process information to choose among alternative brands.

(Influences on Business Buying Behavior) Interpersonal factors

Influence, expertise, authority, and dynamics

(Social Factors) Family

Marketers are interested in the roles and influence of the husband, wife, and children on the purchase of different products and services. It is also one of the strongest buying organizations in the world

Why's

Marketing and other stimuli enter the customer's black box and produces certain responses. The black box is the ____ of buying behavior

Maslow's Hierarchy of Needs

Maslow believed that needs are arranged in a hierarchy, from the most pressing at the bottom to the least pressing at the top. From top to bottom the needs are self-actualization, esteem, social, safety, and psychological needs.

(Psychological Factors) Motivation

Need that is sufficiently pressing to direct a person to seek satisfaction. Companies try to motivate people rather than them just wanting it

(Influences on Business Buying Behavior) Organizational factors

Objectives, strategies, structure, systems, procedures

(Social Factors) Online social networks

Online communities where people socialize or exchange information and opinions

(Personal Factors) Personality and self concept

Personality refers to the unique psychological characteristics that distinguish a person or group. A person's self-concept is also made use of by marketers. The idea is that people's possessions contribute to and reflect their identities.

Business buyer behavior

Purchasing goods and services are used in the production of other products and services

E-Procurement

Purchasing through electronic connections between buyers and sellers-usually online. This occurs through Reverse auctions, Online trading exchanges, Company buying sites, and Extranet links with key suppliers

(Cultural Factors) Social class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors

(Cultural Factors) Culture

Set of basic values, perceptions, wants, and behaviors learned by an individual from family and other important institutions

Supplier development

Systematic development of networks of supplier-partners to ensure a dependable supply of products and materials

(Personal Factors) Age and family lifecycle

Tastes in food, clothes, furniture, and recreation are often ____ related. Buying is also shaped by the stage of the _______ ________

Business market

The _____ ______ is huge and involves more dollars and items than do consumer markets. Business markets differ from consumer markets in terms of market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved.

Business buying process

The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands.

Adoption process

The mental process through which an individual passes from first learning about an innovation to final adoption. Consumers go through five stages in the process of adopting a new product, which is a good, service, or idea that is perceived by some potential customers as new.

(Buyer's Decision Process -- 1st step) Need recognition

The need can be triggered by internal stimuli when one of the person's normal needs rises to a level high enough to become a drive. A need can also be triggered by external stimuli.

(Psychological Factors) Perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world. Selective attention, selective distortion, and selective retention shape this perception

(Personal Factors) Personality traits

There are 5 _________ _____ that marketers attribute the things customers' buy to. They are sincerity, excitement, competence, sophistication, and ruggedness

Business-to-business (B-to-B) marketers

These marketers must understand business markets and business buyer behavior. Then, like businesses that sell to final buyers, they must engage business customers and build profitable relationships with them by creating superior customer value.

(Social Factors) Word of mouth influence

This refers to the impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behavior. Rather than leaving it to chance, marketers can help to create positive conversations about their brands.

(Subculture --> Cultural Factors) Total market strategy

This strategy integrates ethnic themes and cross-cultural perspectives within a brand's mainstream marketing

(Buyer's Decision Process -- 4th step) Purchase decision

Two factors can come between the purchase intention and the purchase decision: the attitudes of others and unexpected situational factors.

(Personal Factors) Lifestyle

_______ is a person's pattern of living as expressed in his or her psychographics. It involves measuring consumers' major AIO dimensions - activities, interests, and opinions. The lifestyle concept can help marketers understand changing consumer values and how they affect buyer behavior.