4110 Exam 2

approvers

authorize proposed actions of deciders or buyers

product development

begins when the company finds and develops a new product idea

visual

color, brightness, size, and shape

influencers

directly influence the buying decision but do not themselves make the final decision

Subcultures

groups of people with shared value systems based on common life experiences and situations.

buyers

have formal authority for selecting suppliers and arranging the terms of purchase

gatekeepers

have the power to prevent sellers or information from reaching members of the buying center -ex: secretary

introduction

is a period of slow sales growth as the product is being introduced into the market

product

is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need

Concentrated Marketing

is appealing to companies with limited resources. -instead of going for a small share of a large market, the firm pursues a large share of one or a few small markets

Cognitive dissonance

is buyer discomfort caused by post purchase conflict.

Organizational Demand

is derived demand service occurs as a result of demand for another. -Ex. conventions, transportation, and ticketing

Culture

is the most basic determinant of a person's wants and behavior.

Incentive travel

Companies give awards Important factors -Destination and attractions -Climate -Recreational facilities -Sightseeing opportunities

1. Personal 2. Commercial 3. Public

Information sources can be obtained from what 3 sources?

Maslows Theory of Motivation

-Human needs are arranged in a hierarchy -A person tries to satisfy the most basic need first.

Limited decision making

-Takes more time and effort going through all five stage. -The perceived risk and level of spending are higher. -Ex.) Eating out at a fine-dine restaurant/ buying clothes

Extensive problem solving

-Takes the most time and effort -All five stages + some more information sources

phase out

-The ideal method -A product is removed in an orderly fashion -The product would be replaced on the next revision

Routine buying decision

-We buy as the result of habit. Ex.) chewing gum, soda, dining out at fast food restaurants etc...

product variety marketing

2 or more products to all the buyers

Corporate meetings

A command performance A short lead time Important factors -Food quality -Meeting rooms -Sleeping rooms -Wireless Internet access

Undifferentiated marketing

A company ignores market segmentation differences and goes after the entire market with one market offer -it focuses common needs of consumers -it is difficult to develop a product & brand to satisfy all or even most consumers

Commercial sources

Advertising, salespeople, dealers, packaging, and displays are what type of information source?

Behavior segmentation

Buyers are divided into groups based on their knowledge, attitude, and use or response to a product

1. Consumer groups (membership groups) 2. Online social networks 3. family 4. Social Roles and status

Consumer behavior is influenced by what 4 components?

Selective attention

Consumers are constantly bombarded with information and will screen out stimuli

oversimplifying

Consumers cope with information overload by __________

Psychographic segmentation

Dividing buyers into different groups based on social class, lifestyle, and personality characteristics

Geographic Segmentation

Dividing the market into different geographic units ex) nations, states, regions, countries, neighborhoods..

Demographic segmentation

Dividing the market into groups based on demographic variables ex) age, gender, income, occupation

Segmenting the market

Dividing the overall market into subgroups ("market segments") using one or more factors is what step...

zero; add up

During development, sales are _____ and the company's investment ______

nonexistent

During introduction Profits are ________ at this stage due to high product introduction expenses

Actionable

Effective programs can be designed to attract and serve the segments describes what requirement for effective segmentation

Supporting (extra) products

Extra products offered to add value to the core product and help to differentiate it from the competition. ex: business center in a corporate hotel, a full service spa in a resort hotel, a full service spa in a resort hotel

Personal sources

Family, friends, neighbors, and acquaintances are what type of information source?

Facilitating product

Goods or services that must be present for the guest to use the core product -Hotel--> check-in/out service, telephones, a restaurant, and etc

turning pegs in a peg board for an hour, paid to lie

Leon Festinger used what experience to explain cognitive dissonance

opinion

Marketers must figure out how to reach ________, when talking about buzz marketing and WOM

Differentiated Marketing

Marriott is apart of which market segment

Association meetings

Members attend Voluntarily. -Demand is somewhat unpredictable -Attrition clause Important attributes -Destination and attraction -Availability of hotel and facilities -Accessibility (distance and cost) -Food & beverage

Selective Distortion

Messages do not always come across in the same way the sender indented.

target marketing

Micromarketing Customized marketing are examples of _____

mass; target

Most companies have moved away from _____ marketing, toward ______ marketing.

complex

Organizational buying decisions tend to be more ________ than consumer decisions.

90%

Over what percent of all associations hold meetings?

Selective Retention

People will forget much that they learn but will tend to retain information that supports their attitudes and beliefs

SMERF

Price price sensitive Held in slow seasons Important factors price Complementary services

attributes

Products can be positioned on specific _________ or against another product class

Public sources

Restaurant reviews, editorials in the travel section, consumer-rating organizations are what type of information source?

Sustainable

Segments are large or profitable enough to serve describes what requirement for effective segmentation

Accessible

Segments can be effectively reached and served describes what requirement for effective segmentation

Selecting target markets

Selecting those market segments ("target markets") that the organization is best able to serve and appeal to is what step...

Measurable

Size, purchasing power, profiles of segments can be measured describes what requirement for effective segmentation

buying center

The decision-making unit of a buying organization is sometimes called the _______

Market segmentation

The division of the overall market for a service into groups with common characteristics

the introduction

The first step in new product development is

formal

The organizational buying process tends to be more _______ than the consumer process.

1. Enviromental 2. Organizational 3. Interpersonal 4. Individual

The various influences on organizational buyers may be classified into what four main groups:

Concentrated marketing

This type of marketing involves higher than normal risks

run out

Used when sales for an item are low

When? Where? To whom? and How?

What 4 decisions must a company make when commercializing a product?

1. Develop positioning for each target segment 2. Develop marketing mix for each target segment

What are the 2 steps in market positioning?

Step 1: segmenting the market Step 2: Selecting target markets

What are the 2 steps in market segmentation?

1. Develop measures of segment attractiveness 2. Select target markets

What are the 2 steps in target marketing?

1. Routine buying decisions 2. Limited decision making 3. Extensive problem solving (systematic)

What are the 3 categories of the decision process?

1. Selective attention 2. Selective distortion 3. Selective retention

What are the 3 components of perception?

1. Joining stage 2. Consumption phase 3. Detachment phase

What are the 3 stages of customer interaction with the service delivery system

1. Mass marketing 2. Product variety marketing 3. Target marketing

What are the 3 stages of marketing?

1. Product is born 2. Passes through several phases 3. Eventually dies as younger products come along that better serve consumer needs

What are the 3 stages of the product life cycle?

1. Phase out 2. run out 3. immediate drop

What are the 3 steps in deleting the product?

1. Identifying a set of possible competitive advantages 2. Selecting the right competitive advantages 3. Communicating and delivering the chosen position to a selected target market

What are the 3 ways to choose and implement a position strategy?

1. More effective use of marketing dollars. 2. Clearer understanding of the needs and wants of selected customer groups. 3. More effective positioning. 4. Greater precision in selecting promotional vehicles and techniques.

What are the 4 benefits of market segmentation?

1. Cultural factors 2. Social factors 3. Personal factors 4. Psychological factors

What are the 4 factors affecting consumer behavior?

1. Measurable 2. Accessible 3. Sustainable 4. Actionable

What are the 4 requirements for effective segmentation?

1. visual 2. aural 2. Olfactory 4. Tactile

What are the 4 stages of multidimensional

1. Geographically 2. Demographically 3. Psychographically 4. Behaviorally

What are the 4 ways you can segment the market?

1. Physical Attribute Differentiation 2. Service Differentiation 3. Personnel Differentiation 4. Location Differentiation 5. Image Differentiation

What are the 5 components of product differentiation?

1. The product is easy to identify by brand or trademark 2. The product is perceived as the best value for the price 3. Quality and standards are easy to maintain 4. The demand for the product class is large enough to support a regional, national, or international chain. 5. The brand should provide "economies of scale" to justify expenditures for branding.

What are the 5 conditions that support branding?

1. Physiological Needs (food, shelter) 2. Safety Needs (security, protection) 3. Social Needs (love) 4. Esteem Needs (self esteem) 5. Self Actualization

What are the 5 hierarchy of needs

1. Consumer behavior is purposeful and goal oriented 2. The consumer has free choice 3. Consumer behavior is a process 4. Consumer behavior can be influenced 5. There is a need for consumer education

What are the 5 premises of consumer behavior?

Product development Introduction Growth Maturity Decline

What are the 5 product lifecycle strategies?

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post purchase behavior

What are the 5 steps of the buyer decision process?

1. Upper uppers (1%) 2. Lower uppers (2%) 3. Upper middle (12%) 4. Middle (32%) 5. Working (38%) 6. Upper Lowers (9%) 7. Lower lowers (7%)

What are the 7 american social classes

1. Identify basis for segmenting the market 2. Develop profiles of resulting segments

What are the first 2 steps in market segmentation?

Social, military, educational, religious, fraternal

What is SMERF

Core product

What the buyer is really buying Ex) rooms in a hotel a burger at burger king

1. Write down the problem 2. Think very hard 3. Write down the answer

What were the 3 problem solving algorithms that Richard Feynman suggested? (Challenger disaster)

immediate drop

When the product may cause harm or complaints

1. users 2. influencers 3. deciders 4. approvers 5. buyers 6. gatekeepers

Who are the 6 participants in the organizational buying process

because people within a given class tend to exhibit similar behavior, including buying behavior.

Why are marketers interested in social classes?

Differentiated Marketing

a company targets several market segments and designs separate offers for each.

Belief

a descriptive thought that a person holds about something

brand

a name, term, sign, symbol, design, or a combination of these elements that is intended to identify the goods or services of a seller and differentiate them from competitors

growth

a period of rapid market acceptance and increasing profits

maturity

a period of slowdown in sales growth because the product has achieved acceptance by most of potential buyers. Profits level off or decline.

Personality

a person's distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her environment

Lifestyle

a person's pattern of living as expressed in his or her activities, interests, and opinions

attitude

a person's relatively consistent evaluations, feelings, and tendencies toward an object or an idea

market

all actual and potential buyers of a product or service

A buying center

all those individuals and groups who participate in the purchasing decision-making process

mass marketing

one product to all the buyers

Social Classes

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

olfactory

scent and freshness

deciders

select product requirements and suppliers

tactile

softness, smoothness, and temperature

consumption phase

takes place when the service is consumed

Self-Concept

the complex mental pictures people have of themselves, also known as self-image

decline

the period when sales fall off quickly and profits drop.

Atmosphere: the physical environment

this Can be the customer's reason for choosing, or not choosing, to do business with an establishment

Learning

this describes changes in an individual's behavior arising from experience

augmented product

this includes accessibility, atmosphere, customer interaction with the service organization, customer participation, and customers' interaction with each other.

Family

this remains the most important consumer buying organization in American society.

users

those who use the product or service

aural

volume and pitch

detachment phase

when the customer is through using a product and departs

joining stage

when the customer makes the initial inquiry contact