marketing all for mid-term

Identify the ethical values marketers should embrace

Being part of an ethically responsible firm should be important to every employee, but it is particularly important to marketers because they interact most directly with customers and suppliers, which offers a multitude of ethical questions and opportunities. AMA's Code of Ethics indicates that the basic ethical values marketers should aspire to are honesty, responsibility, fairness, respect, openness, and citizenship.

Explain the various components of brand equity.

Brand equity summarizes the value that a brand adds, or subtracts, from the offering's value. It comprises brand awareness, or how many consumers in the market are familiar with the brand; brand associations, which are the links consumers make between the brand and its image; and brand loyalty, which occurs when a consumer will only buy that brand's offer. Brand equity also encompasses the concept of perceived value, which is a subjective measure that consumers develop to assess the costs of obtaining the brand.

Describe the ways in which business-to-business (B2B) firms segment their markets.

All firms want to divide the market into groups of customers with different needs, wants, or characteristics who therefore might appreciate products or services geared especially toward them. On a broad level, B2B firms divide the market into four types: manufacturers or service providers, resellers, institutions, and government. Manufacturers and service providers purchase materials to make their products and components and offer expertise to help run their businesses, such as computer and telephone systems. Resellers are primarily wholesalers, distributors, or retailers that sell the unchanged products. Institutions include nonprofit organizations such as hospitals, schools, or churches. Finally, governments purchase all types of goods and services, but in the United States, defense is among the largest expenditures.

Understand the types of mobile applications.

As mobile users increase in number and diversity, the applications developed to appeal to them are spreading as well. For now, most of these apps constitute three broad categories: price checking apps, location-based apps, and fashion apps. However, many applications span more than one category.

Describe how firms grow their business

Firms use four basic growth strategies: market penetration, market development, product development, and diversification. A market penetration strategy directs the firm's efforts toward existing customers and uses the present marketing mix. In other words, it attempts to get current customers to buy more. In a market development strategy, the firm uses its current marketing mix to appeal to new market segments, as might occur in international expansion. A product development growth strategy involves offering a new product or service to the firm's current target market. Finally, a diversification strategy takes place when a firm introduces a new product or service to a new customer segment. Sometimes a diversification strategy relates to the firm's current business, such as when a women's clothing manufacturer starts making and selling men's clothes, but a more risky strategy is when a firm diversifies into a completely unrelated business.

Describe the difference between functional and psychological needs.

Functional needs pertain to the performance of a product or service. Psychological needs pertain to the personal gratification consumers associate with a product and/or service.

Identify three service recovery strategies.

In a best-case scenario, the service never fails. But some failures are inevitable and require the firm to make amends to the customer by: (1) listening carefully and involving the customer in the service recovery; (2) finding a fair solution to the problem that compensates the customer for the failure and follows procedures the customer believes are fair; and (3) resolving the problem quickly.

List the steps in the B2B buying process.

Similar to the B2C buying process, the B2B process consists of several stages: need recognition; product specification; the RFP process; proposal analysis, vendor negotiation, and selection; order specification; and vendor performance assessment using metrics. The B2B process tends to be more formalized and structured than the customer buying process.

Describe the 4E framework of social media marketing.

The 4E framework recognizes that marketers must: excite customers with relevant offers; educate them about the offering; help them experience products, whether directly or indirectly; and give them an opportunity to engage.

Explain the zone of tolerance.

The area between customers' desired service and the minimum level of service they will accept is the zone of tolerance. It is the difference between what the customer really wants and what he or she will accept before going elsewhere. Firms can assess their customers' zone of tolerance by determining the desired and expected level of service for each service dimension, their perceptions of how well the focal service performs and how well a competitive service performs, and the importance of each service quality dimension.

Detail different buying situations.

The buying process depends to a great extent on the situation. If a firm is purchasing a product or service for the first time (i.e., new buy), the process is much more involved than if it is engaging in a straight rebuy of the same item again. A modified rebuy falls somewhere in the middle, such that the buyer wants essentially the same thing but with slightly different terms or features.

Identify the roles within the buying center.

The initiator first suggests the purchase. The influencer affects important people's perceptions and final decisions. The decider ultimately determines at least some of the buying decision—whether, what, how, or where to buy. The buyer handles the detailsof the actual purchase. The user consumes or employs the product or service. The gatekeeper controls information and access to decision makers and influencers. In B2B situations, it is likely that several people, organized into a buying center, will be involved in making the purchase decision. The vendor must understand the relationships among the participants of the buying center to be effective. A firm's organizational culture can also influence the decision process. For instance, if a firm is trying to sell to a young, high-tech computer component manufacturer, it might be well advised to send sales people who are fluent in technology-speak and can easily relate to the customer.

11) Describe the components of a product.

The product itself is important, but so are its associated services, such as support or financing. Other elements combine to produce the core customer value of a product: the brand name, quality level, packaging, and additional features.

Understand the types of social media.

Users of social media employ them to promote themselves or their products and services. They do so through three main categories: social networking sites (e.g., Facebook, LinkedIn), media-sharing sites (e.g., YouTube), and thought-sharing sites (e.g., blogs, Twitter).

Describe how marketers create value for a product or service

Value represents the relationship of benefits to costs. Firms can improve their value by increasing benefits, reducing costs, or both. The best firms integrate a value orientation into everything they do. If an activity doesn't increase benefits or reduce costs, it probably shouldn't occur. Firms become value driven by finding out as much as they can about their customers and those customers' needs and wants. They share this information with their partners, both up and down the supply chain, so the entire chain collectively can focus on the customer. The key to true value-based marketing is the ability to design products and services that achieve precisely the right balance between benefits and costs. Valuebased marketers aren't necessarily worried about how much money they will make on the next sale. Instead, they are concerned with developing a lasting relationship with their customers so those customers return again and again.

Distinguish between brand extension and line extension.

Whereas a brand extension uses the same brand name for a new product that is introduced into new or the same markets, a line extension is simply an increase of an existing product line by the brand.

Determine the value proposition.

A firm's value proposition communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it. It consists of the attributes of a product or service that are desired by the target market, but not available from competitors. Firms could attempt to offer attributes that are important to its customers, whether or not they are offered by competitors. For attributes that are not important to its customers, it should either educate its customers about the importance of those attributes, deemphasize them, or not offer those product or service attributes.

Describe the elements of a marketing plan.

A marketing plan is composed of an analysis of the current marketing situation, its objectives, the strategy for the four Ps, and appropriate financial statements. A marketing plan represents the output of a three-phase process: planning, implementation, and control. The planning phase requires managers to define the firm's mission and vision and assess the firm's current situation. It helps answer the questions, "What business are we in now, and what do we intend to be in the future?" In the second phase, implementation, the firm specifies, in more operational terms, how it plans to implement its mission and vision. Specifically, to which customer groups does it wish to direct its marketing efforts, and how does it use its marketing mix to provide good value? Finally, in the control phase, the firm must evaluate its performance using appropriate metrics to determine what worked, what didn't, and how performance can be improved in the future.

Define a marketing strategy.

A marketing strategy identifies (1) a firm's target markets(s), (2) a related marketing mix (four Ps), and (3) the bases on which the firm plans to build a sustainable competitive advantage. Firms use four macro strategies to build their sustainable competitive advantage. Customer excellence focuses on retaining loyal customers and excellent customer service. Operational excellence is achieved through efficient operations and excellent supply chain and human resource management. Product excellence entails having products with high perceived value and effective branding and positioning. Finally, locational excellence entails having a good physical location and Internet presence.

Identify the advantages that brands provide firms and consumers.

Brands play important roles in enabling people to make purchase decisions more easily and encouraging customer loyalty. For firms specifically, they also constitute valuable assets and improve a company's bottom line and help protect against competition.

Explain the difference between a product mix's breadth and a product line's depth.

Breadth, or variety, entails the number of product lines that a company offers. Depth involves the number of categories within one specific product line.

Describe how ethics can be integrated into a firm's marketing strategy.

Ethical and socially responsible considerations should be integrated into the firm's mission statement as long as top management follows through and commits to supporting a strong ethical climate within the organization. When considering their marketing strategy, firms should ask not only "can we implement a certain policy?" but also "should we do it?" Finally, in the control phase, marketers must determine whether they truly have acted in an ethical and socially responsible manner. If not, they should make changes to the marketing strategy.

Describe the different types of organizational cultures.

Firm culture consists of unspoken guidelines that employees share through various work situations. They generally can be classified as autocratic, such that one person makes most decisions; democratic, where the majority rules; consultative, in which one person makes decisions based on the input of others; or consensus, which requires all members of the team to reach collective agreement.

Outline how customers, the company, competitors, and corporate partners affect marketing strategy.

Everything a firm does should revolve around the customer; without the customer, nothing gets sold. Firms must discover their customers' wants and needs and then be able to provide a valuable product or service that will satisfy those wants or needs. If there were only one firm and many customers, a marketer's life would be a piece of cake. But because this situation rarely occurs, firms must monitor their competitors to discover how they might be appealing to their customers. Without competitive intelligence, a firm's customers might soon belong to its competitors. Though life certainly would be easier without competitors, it would be difficult, if not impossible, without corporate partners. Good marketing firms or departments work closely with suppliers, marketing research firms, consultants, and transportation firms to coordinate the extensive process of discovering what customers want and finally getting it to them when and where they want it. Each of these activities—discovering customer needs, studying competitors' actions, and working with corporate partners—helps add value to firms' products and services.

Recognize and understand the three components of a social media strategy.

Firms engage with customers through social and mobile media using a three-step process. First, they listen to the customer using techniques such as sentiment analysis. Second, they analyze the data collected in the first step using metrics such as bounce rates, click paths, and conversion rates. Finally, they use this information to develop tactics to engage their customers.

Identify the various market entry strategies.

Firms have several options for entering a new country, each with a different level of risk and involvement. Direct investment is the most risky but potentially the most lucrative. Firms that engage in a joint venture with other firms already operating in the host country share the risk and obtain knowledge about the market and how to do business there. A strategic alliance is similar to a joint venture, but the relationship is not as formal. A less risky method of entering a new market is franchising, in which, as in domestic franchise agreements, the franchisor allows the franchisee to operate a business using its name and strategy in return for a fee. The least risky method of entering another country is simply exporting.

Articulate the differences among targeting strategies: undifferentiated, differentiated, concentrated, or micromarketing.

Firms use a targeting strategy after they have identified its segments. An undifferentiated strategy uses no targeting at all and works only for products or services that most consumers consider to be commodities. The difference between a differentiated and a concentrated strategy is that the differentiated approach targets multiple segments, whereas the concentrated targets only one. Larger firms with multiple product/service offerings generally use a differentiated strategy; smaller firms or those with a limited product/service offering often use a concentrated strategy. Firms that employ a micromarketing or one-to-one marketing strategy tailor their product/ service offering to each customer—that is, it is custom made. In the past, micromarketing was reserved primarily for artisans, tailors, or other craftspeople who would make items exactly as the customer wanted. Recently, however, larger manufacturers and retailers have begun experimenting with custom- made merchandise as well. Service providers, in contrast, are largely accustomed to customizing their offering.

Determine the various types of branding strategies used by firms.

Firms use a variety of strategies to manage their brands. First, they decide whether to offer manufacturer and/or private-label brands. Second, they have a choice of using an overall corporate brand or a collection of product line or individual brands. Third, to reach new markets or extend their current market, they can extend their current brands to new products. Fourth, firms can co-brand with another brand to create sales and profit synergies for both. Fifth, firms with strong brands have the opportunity to license their brands to other firms. Finally, as the marketplace changes, it is often necessary to reposition a brand.

Identify the four steps in ethical decision making.

First, firms can include ethics and social responsibility in their corporate mission. Second, they should institute policies and procedures to ensure that everyone working for the firm is acting in an ethically responsible manner. Third, firms can model their ethical policies after a well-established code of ethics like the one provided by the American Marketing Association. Fourth, when making ethically sensitive decisions, firms can use metrics such as the ethical decision-making metric shown in Exhibit 4.4

Describe the components of a country market assessment.

First, firms must assess the general economic environment. For instance, countries with a trade surplus, strong domestic and national products, growing populations, and income growth generally are relatively more favorable prospects. Second, firms should assess a country's infrastructure. To be successful in a particular country, the firm must have access to adequate transportation, distribution channels, and communications. Third, firms must determine whether the proposed country has a political and legal environment that favors business. Fourth, firms should be cognizant of the cultural and sociological differences between their home and host countries and adapt to those differences to ensure successful business relationships.

Examine the five service quality dimensions.

First, reliability refers to whether the provider consistently provides an expected level of service. Second, responsiveness means that the provider notes consumers' desires and requests and then addresses them. Third, assurance reflects the service provider's own confidence in its abilities. Fourth, empathy entails the provider's recognition and understanding of consumer needs. Finally, tangibles are the elements that go along with the service, such as the magazines in a doctor's waiting room.

Describe the differences among the various generational cohorts.

Generational cohorts are groups of consumers of the same generation. They are likely to have similar purchase and consumption behaviors due to their shared experiences and stages of life. The four main types include Gen Z (born 2001-2014), Gen Y (born 1977-2000), Gen X (1965-1976), and Baby Boomers (1946-1964). Each of these segments exhibits different consumption patterns, attitudes toward the world, and preferences with regard to marketing efforts.

Distinguish between ethics and social responsibility.

Individuals and firms can (and should) act ethically, but the outcome of their acts may not affect society in general. An ethical act may only affect the firm's immediate stakeholders, such as its employees, customers, and suppliers. To be socially responsible, a firm also must take actions that benefit the community in a larger sense, such as helping people who have been affected by a natural disaster like a hurricane.

Discuss postpurchase outcomes.

Marketers hope that after their purchase, consumers are satisfied and pleased with their purchase, which can lead to customer loyalty, a positive postpurchase outcome. However, consumers also may suffer postpurchase dissonance, or buyer's remorse

Describe how firms determine whether a segment is attractive and therefore worth pursuing.

Marketers use several criteria to assess a segment's attractiveness. First, the customer should be identifiable—companies must know what types of people are in the market so they can direct their efforts appropriately. Second, the market must be substantial enough to be worth pursuing. If relatively few people appear in a segment, it is probably not cost-effective to direct special marketing mix efforts toward them. Third, the market must be reachable— the firm must be able to reach the segment through effective communications and distribution. Fourth, the firm must be responsive to the needs of customers in a segment. It must be able to deliver a product or service that the segment will embrace. Finally, the segment must be profitable, both in the near term and over the lifetime of the customer.

Define the role of marketing in organizations

Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing strives to create value in many ways. If marketers are to succeed, their customers must believe that the firm's products and services are valuable; that is, they are worth more to the customers than they cost. Another important and closely related marketing role is to capture value of a product or service based on potential buyers' beliefs about its value. Marketers also enhance the value of products and services through various forms of communication, such as advertising and personal selling. Through communications, marketers educate and inform customers about the benefits of their products and services and thereby increase their perceived value. Marketers facilitate the deliveryof value by making sure the right products and services are available when, where, and in the quantities their customers want. Better marketers are not concerned about just one transaction with their customers. They recognize the value of loyal customers and strive to develop long-term relationships with them.

Describe how involvement influences the consumer decision process.

More involved consumers, who are more interested or invested in the product or service they are considering, tend to engage in extended problem solving. They gather lots of information, scrutinize it carefully, and then make their decisions with caution to minimize any risk they may confront. In contrast, less involved consumers often engage in limited problem solving, undertake impulse purchases, or rely on habit to make their purchase decisions.

Describe how a firm chooses which consumer group(s) to pursue with its marketing efforts

Once a firm identifies different marketing opportunities, it must determine which are the best to pursue. To accomplish this task, marketers go through a segmentation, targeting, and positioning (STP) process. Firms segment various markets by dividing the total market into those groups of customers with different needs, wants, or characteristics who therefore might appreciate products or services geared especially toward them. After identifying the different segments, the firm goes after, or targets, certain groups on the basis of the firm's perceived ability to satisfy the needs of those groups better than competitors and do so profitably. To complete the STP process, firms position their products or services according to the marketing mix variables so that target customers have a clear, distinctive, and desirable understanding of what the product or service does or represents relative to competing products or services.

Identify various social trends that affect marketing.

Social trends have a tremendous impact on what consumers purchase and consume. Understanding these trends—such as thrift, health and wellness, green marketing, privacy issues, and the time-poor society—can help marketers serve their customers better.

Summarize portfolio analysis and its use to evaluate marketing performance.

Portfolio analysis is a management tool used to evaluate the firm's various products and businesses— its portfolio—and allocate resources according to which products are expected to be the most profitable for the firm in the future. A popular portfolio analysis tool developed by the Boston Consulting Group classifies all products into four categories. The first, stars, are in high-growth markets and have high market shares. The second, cash cows, are in low-growth markets but have high market share. These products generate excess resources that can be spun off to products that need them. The third category, question marks, are in high-growth markets but have relatively low market shares. These products often use the excess resources generated by the cash cows. The final category, dogs, are in low-growth markets and have relatively low market shares. These products are often phased out.

Define positioning and describe how firms do it.

Positioning is the "P" in the STP (segmentation, targeting, and positioning) process. It refers to how customers think about a product, service, or brand in the market relative to competitors' offerings. Firms position their products and services according to several criteria. Some focus on their offering's value—customers get a lot for what the product or service costs. Others determine the most important attributes for customers and position their offering on the basis of those attributes. Symbols can also be used for positioning, though few products or services are associated with symbols that are compelling enough to drive people to buy. Finally, one of the most common positioning methods relies on the favorable comparison of the firm's offering with the products or services marketed by competitors. When developing a positioning strategy and a perceptual map, firms go through six steps. First, they determine consumers' perceptions and evaluations of the product or service in relation to competitors. Second, they identify the market's ideal points and market sizes for those products or services. Third, they identify competitors' positions. Fourth, they determine consumer preferences. Fifth, they select the position. Finally, they monitor the positioning strategy.

Analyze a marketing situation using SWOT analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis occurs during the second step in the strategic planning process, the situation analysis. By analyzing what the firm is good at (its strengths), where it could improve (its weaknesses), where in the marketplace it might excel (its opportunities), and what is happening in the marketplace that could harm the firm (its threats), managers can assess their firm's situation accurately and plan its strategy accordingly.

Indicate the advantages of a product's packaging and labeling strategy.

Similar to brands, packaging and labels help sell the product and facilitate its use. The primary package holds the product, and its label provides product information. The secondary package provides additional consumer information on its label and facilitates transportation and storage for both retailers and their customers. Labels have become increasingly important to consumers because they supply important safety, nutritional, and product usage information.

Understand why marketing is important, both within and outside the firm.

Successful firms integrate marketing throughout their organizations so that marketing activities coordinate with other functional areas such as product design, production, logistics, and human resources, enabling them to get the right product to the right customers at the right time. Marketing helps facilitate the smooth flow of goods through the supply chain, all the way from raw materials to the consumer. From a personal perspective, the marketing function facilitates your buying process and can support your career goals. Marketing also can be important for society through its embrace of solid, ethical business practices. Firms "do the right thing" when they sponsor charitable events, seek to reduce environmental impacts, and avoid unethical practices; such efforts endear the firm to customers. Finally, marketing is a cornerstone of entrepreneurialism. Not only have many great companies been founded by outstanding marketers, but an entrepreneurial spirit pervades the marketing decisions of firms of all sizes.

Understand the marketing opportunities in BRIC countries.

Technology, particularly in the communication field, has facilitated the growth of global markets. Firms can communicate with their suppliers and customers instantaneously, easily take advantage of production efficiencies in other countries, and bring together parts and finished goods from all over the globe. Four countries that provide tremendous marketing opportunities are the BRIC nations—Brazil, Russia, India and China. These countries have large populations that are increasingly interested in the latest goods and services.

List the factors that affect the consumer decision process.

The elements of the marketing mix (product, place, promotion, and price) have significant effects, of course. In addition, social factors, such as family and culture, influence not only what a consumer buys but also how a consumer goes about making a purchase decision. The psychological factors that influence purchase decisions include motives (which can be higher or lower on the hierarchy of needs), attitudes, perceptions, learning, and lifestyle. Finally, the specific factors that mark the purchase situation, like the store setting or even the time of day, can alter people's decision process

Highlight the similarities and differences between a domestic marketing strategy and a global marketing strategy.

The essence of a global marketing strategy is no different from that of a domestic strategy. The firm starts by identifying its target markets, chooses specific markets to pursue, and crafts a strategy to meet the needs of those markets. However, additional issues make global expansion more problematic. For instance, should the product or service be altered to fit the new market better? Does the firm need to change the way it prices its products in different countries? What is the best way to get the product or service to the new customers? How should the firm publicize its product or service offering in various countries?

Describe factors that affect information search.

The information search that people undertake varies depending on both external and internal factors. Among the former, the type of product or service dictates whether people can make an easy, quick decision or instead must undertake significant research to find the best purchase option. A person's perceptions of the benefits versus the costs of the search also determine how much effort they undertake. These perceptions often relate closely to their perception of the risk involved in their purchase. Finally, people's locus of control, whether external or internal, strongly influences their information search actions.

Discuss the four gaps in the Service Gap Model.

The knowledge gap reflects the difference between customers' expectations and the firm's perception of those customer expectations. Firms need to match customer expectations with actual service through research. The standards gap is the difference between the firm's perceptions of customers' expectations and the service standards it sets. Appropriate service standards and measurements of service performance help close this gap. The delivery gap is the difference between the firm's service standards and the actual service it provides to customers. Closing this gap requires adequate training and empowerment of employees. The communication gap refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises. Firms close the communications gap by managing customer expectations and promising only what they can deliver.

Outline the implementation of the marketing mix as a means to increase customer value.

The marketing mix consists of the four Ps—product, price, promotion, and place—and each P contributes to customer value. To provide value, the firm must offer a mix of products and services at prices their target markets will view as indicating good value. Thus, firms make trade-offs between the first two Ps, product and price, to give customers the best value. The third P, promotion, informs customers and helps them form a positive image about the firm and its products and services. The last P, place, adds value by getting the appropriate products and services to customers when they want them and in the quantities they need.

Outline the different methods of segmenting a market.

There is really no one best method to segment a market. Firms choose from various methods on the basis of the type of product/service they offer and their goals for the segmentation strategy. For instance, if the firm wants to identify its customers easily, demographic or geographic segmentation likely will work best. But if it is trying to dig deeper into why customers might buy its offering, then psychographic, geodemographic, benefits, or behavioral segmentation (occasion and loyalty) work best. Typically, a combination of several segmentation methods is most effective.

Identify the types of consumer products.

These products tend to be classified into four groups: specialty, shopping, convenience, and unsought products. Each classification involves a different purchase situation and consumer goal.

Describe the ways in which corporate social responsibility programs help various stakeholders.

To answer this question, we first have to identify the various stakeholders of a company, namely, customers, employees, the marketplace, and society. CSR benefits these stakeholders as follows: Customers: When companies adopt CSR, customers know that they can trust the firms to provide healthy, ethically acceptable products and services. Many customers also feel better about buying from a company that engages in responsible practices, which provides them with the additional value of feeling good about buying from that company. Employees: A firm committed to CSR likely treats its employees with decency and respect. For many employees (especially members of Generation Y), working for an irresponsible firm would be antithetical to their own morals and values. Marketplace: An industry improves its practices, and avoids scandals, when it ensures that the participating firms act responsibly and appropriately in all areas. Society: This stakeholder is local, national, or global communities. The benefits of CSR in all cases are numerous—cleaner air and water, aid to the underprivileged, and healthier product options all can result from CSR by companies.

Understand the methods for marketing yourself using social media.

To market themselves, people need to ensure they reach a large number of people, that they influence those people, and that the network of people that they influence is also influential. Several firms, such as Klout, have devised metrics to assess one's social network impact. Having a social network presence is becoming increasingly important in finding certain types of marketing jobs. But on a cautionary note, it is important for people to choose how they are portrayed in social media carefully because once something is posted, it is there for all to see, including potential employers.

13) Describe how the marketing of services differs from the marketing of products.

Unlike products, services are intangible, inseparable, variable, and perishable. They cannot be seen or touched, which makes it difficult to describe their benefits or promote them. Service providers therefore enhance service delivery with tangible attributes, like a nice atmosphere or price benefits. Services are produced and consumed at the same time, so marketers must work quickly, and they are more variable than products, though service providers attempt to reduce this variability as much as possible. Finally, because consumers cannot stockpile perishable services, marketers often provide incentives to stagger demand.

Explain why marketers must consider their macroenvironment when they make decisions.

What are the chances that a fast-food hamburger restaurant would be successful in a predominantly Hindu neighborhood? Not good. Marketers must be sensitive to such cultural issues to be successful, and they must also consider customer demographics—age, income, market size, education, gender, and ethnicity—to identify specific customer target groups. In any society, major social trends influence the way people live. In no other time in history has technology moved so rapidly and had such a pervasive influence on the way we live. Not only do marketers help identify and develop technologies for practical, everyday uses, but technological advances help marketers provide consumers with more products and services more quickly and efficiently. The general state of the economy influences how people spend their discretionary income. When the economy is healthy, marketing success comes relatively easily. But when the economy gets bumpy, only wellhoned marketing skills can yield long-term successes. Naturally, all firms must abide by the law, and many legal issues affect marketing directly. These laws pertain to competitive practices and protecting consumers from unfair or dangerous products.

Articulate the steps in the consumer buying process

recognition, consumers simply realize they have an unsatisfied need or want that they hope to address. Second, they begin to search for information to determine how to satisfy that need. Third, during the alternative evaluation stage, they assess the various options available to them to determine which is the best for their purposes. Fourth, the purchase stage involves obtaining and using the product. Fifth and finally, consumers enter the postpurchase stage, during which they determine whether they are satisfied or dissatisfied with their choice.