Chapter 1

decision process

(Situations) -> problem recognition -> information search -> alternative evaluation & selection -> outlet selection & purchase -> post purchase processes

Outcomes based on the execution of a marketing strategy occur ...

....for the firm, the individual, and society

What are the steps of market segmentation

1. Identifying product-related need sets. 2. Grouping customers with similar need sets. 3. Describing each group. 4. Selecting an attractive segment(s) to serve.

What is an economic outcome on consumption?

Consumers' decisions on whether to buy or to save affect economic growth, the availability and cost of capital, employment levels, and so forth.

_______ is perhaps the most pervasive influence on consumer behavior.

Culture

_______ expect to establish an image or position in the marketplace among target customers, generate sales, and ultimately create satisfied customers who are the key to long-term profits.

Firms

low investment decisions

Most consumer decisions involve very little effort or thought on the part of the consumer.

Various regulatory bodies exist to develop, interpret, and/or implement policies designed to protect and aid consumers.

Regulatory Policy

Does injurious consumption affect society?

Yes - he social costs of smoking-induced illnesses, alcoholism, and drug abuse are staggering.

creating satisfied customers requires ..

`customers continue to believe that your brand meets their needs and offers superior value after they have used it.

Consumers make decisions that have a major impact on the _________ environments of both their own and other societies.

`physical

market segment

a portion of a larger market whose needs differ somewhat from the larger market.

marketing communications

advertising, the sales force, public relations, packaging, and any other signal that the firm provides about itself and its products.

attitude

an enduring organization of motivational, emotional, perceptual, and cognitive processes with respect to some aspect of our environment. he way a person thinks, feels, and acts toward some aspect of his or her environment, such as a retail store, television program, or product.

product position

an image of the product or brand in the consumer's mind relative to competing products and brands.

product

anything a consumer acquires or might acquire to meet a perceived need.

service

auxiliary or peripheral activities that are performed to enhance the primary product or primary service.

Step 1: marketing analysis

company, competitors, conditions, consumers

the_______________ ___________ ____________ intervenes between the marketing strategy (as implemented in the marketing mix) and the outcomes.

consumer decision process

The state of the economy, the physical environment, government regulations, and technological developments affect ...

consumer needs and expectations as well as company and competitor capabilities.

Identifying the various need sets that the firm's current or potential product might satisfy typically involves ...

consumer research, particularly focus groups and depth interviews, as well as logic and intuition.

It is important that _____________ accurately understand the strategies and tactics being used so they can be more effective consumers.

consumers

behavioral targeting

consumers' online activity is tracked and specific banner ads are delivered based on that activity,

Most economically developed societies are legitimately referred to as ______________societies.

consumption

Auxiliary services _______ money to provide.

cost

External influences

culture subculture demographics socialstatus reference groips family marketing activities

Organizations approach market segmentation with a set of _________________ _____ _____________ capabilities.

current and potential

Finding profitable segments means identifying a maximal fit between ___________ _________ and the firm's offerings.

customer needs

t is critical that a firm consider value from the ___________ _____________.

customer's perspective.

Once consumers with similar need sets are identified, they should be described in terms of their ...

demographics, lifestyles, and media usage.

Both individuals and families exhibit _________lifestyles.

distinct

________ ____ __________ often have as much or more influence on the outcome as do facts and product features.

emotions and feelings

consumer cost

everything the consumer must surrender in order to page 20receive the benefits of owning/using the product.

distribuition

having the product available where target customers can buy it, is essential to success.

lifestyle

how one lives, including the products one buys, how one uses them, what one thinks about them, and how one feels about them

Step 2: Market segmentation

identify product related need set, group customers with similar need sets, describe each group, select attractive segments to target

For the __________ the process results in some level of need satisfaction, financial expenditure, attitude creation or change, and/or behavioral changes.

individual,

Step 5: Outcomes

indvidual, firm, society

price

is the amount of money one must pay to obtain the right to use the product

marketing mix

is the product, price, communications, distribution, and services provided to the target market.

consumer behavior

is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.

self concept

is the totality of an individual's thoughts and feelings about him- or herself

o be viable, a segment must be ______ enough to be served profitably.

large

What is the marketing strategy and consumer behavior process?

market analysis market segmentation marketing strategy consumer decision process outcomes

Marketing strategy is formulated in terms of the ______________ _________.

marketing mix;

How will we provide superior customer value to our target market? - What answers this question

marketing strategy

One of the ways firms seek to provide customer value is to reduce the ______ costs of owning or operating a product.

nonprice

When does an experience occur?

occurs when a company intentionally creates a memorable event for customers

It is important to remember that each market segment requires its ________ marketing strategy.

own

internal infleunces

perceptions learning memory motives personality emotions attitudes

The term product refers to..

physical products and primary or core services.

Step 4: consumer decision process

problem recognition, informative search, alternative evaluation, purchase, use, evaluation

Step 3: Marketing Strategy

product, price, distribution, service, promotion,

generally more ________________ to maintain existing customers than to replace them with new customers.

profitable

Product position does not require a _______ for it to develop

purchase

price sometimes serves as a signal of _________.

quality

What are the the Food and Drug Administration (FDA) administers the Nutrition Labeling and Education Act (NLEA) examples of?

regulatory bodieds

Virtually all firms evaluate the success of their marketing programs in terms of _______ _________ and profits.

sales revenues

Lifestyle is the manifestation of the individual's ____ -__________.

self-concept

For _________, the cumulative effect of the marketing process affects economic growth, pollution, and social welfare, the latter of which creates many ethical implications.

society

The total product is presented to the ________ ________ which is consistently engaged in processing information and making decisions designed to maintain or enhance its lifestyle (individuals and households) or performance (businesses and other organizations)

target market,

What are the two key processes in the success of need satisfaction?

the actual need fulfillment and the perceived need fulfillment.

Social marketing

the application of marketing strategies and tactics to alter or create behaviors that have a positive effect on the targeted individuals or society as a whole

customer value

the difference between all the benefits derived from a total product and all the costs of acquiring those benefits.

perception

the process by which individuals receive and assign meaning to stimuli

total product.

the product features, price, communications, distribution, and services that will provide customers with superior value.

target market

the segment(s) of the larger market on which we will focus our marketing effort

Marketing decisions based on explicit consumer behavior theory, assumptions, and research are more likely to be successful than ...

those based on hunches or intuition, and thus create a competitive advantage.

need set

used to reflect the fact that most products in developed economies satisfy more than one need

Injurious consumption

when individuals or groups make consumption decisions that have negative consequences for their long-run well-being.