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