Marketing Management Concepts to Apply
Want
"Needs" that are learned during a person's life
Rank the 4 P's in order of importance. Explain your rationale and how a brand manager would achieve long term success with this strategy.
(They are all the same???) 1. Product. If you do not have the right thing to sell all the promotions will not matter at all. 2. Place. If people can't get the product, then it may as well not exist. 3. Publicity. If people don't know about the product and what it stands for, they may not buy it as much as if they did know about it. Also can build/ solidify relationships. 4. Promotion. Can increase consumer frequency/ satisfaction if they feel they are getting their money's worth. They can come back for more. A brand manager could achieve long term success if they put the product aspect first because if you have a quality product that satisfies customers and causes them to come back for more, you will have developed a life time relationship and have the most long-term success.
why is market planning essential? (ch.2)
-market planning is essential to make sure your objectives as a company are lining up with valid opportunutues -match resources to marketing opportunities, or are just blindly producing blindly -need to know your company, market, industry, environment, customers and competition (situational analysis) -need to evaluate the CRITICAL ISSUES- what issues exist that should be addressed -need to set your marketing objectives- SMART- => specific, measureable => how will marketing achieve its business objectives and address the critical issues
What are three possible dimensions on which to segment consumer markets, and examples of each
1. BEHAVIORAL needs, attitudes, and how present or potential goods and services fit into a customers' consumption patterns => affects PRODUCT (packaging, product line assortment, branding) and PROMOTION (what potential customers need and want to know about the firm's offering, and what appeals should be used 2. URGENCY to get need satisfied and desire and willingness to seek information, compare, and shop => affects PLACE (how directly products are distributed from producer to consumer, how extensively they are made available, and the level of service needed) and PRICE (how much potential customers are willing to pay) 3. GEOGRAPHIC LOCATION and other demographic characteristics of potential customers =>affects size of TARGET MARKETS (economic potential), PLACE (where products should be made available) and PROMOTION (where and to whom to target with advertising, publicity, sales promotion and personal selling) *usually have to use several different dimensions at the same time
What are the three criteria to be used when determining which market/segment opportunities to pursue?
1. Competitive Environment and Competitive Landscape -Monopoly, monopolistic competition, oligopoly, pure competition Future rivals and immediate rivals 2. Industry Overview - With past, present and future taken into consideration 3. Competition Matrix -An organized table to compare strengths and weaknesses of a company to those of its competitive rivals Market share, USP, pricing, warranty, reasons to buy, etc
4 types of market growth strategies
1. Penetration- same target market, same product, just increasing sales. Most successful because just involves getting current customers to buy MORE ex) loyalty card 2. Product development- offering the same target market a new product. Second most successful 3. Market development- same product new market ex) slim fast 4. Diversification- new product, new market ex) Honda cars
Components of a marketing plan
1. Situation analysis: company, market, environmental, competitive and customer analysis- SWOT 2. Critical issues: not all data is meaningful or insightful- given your SWOT and data presented in your situation analysis, what issues exist and should be addressed? 3. Marketing objectives: SMART- how will marketing achieve its business goals and address the critical issues? 4. segmentation, target market, product positioning and differentiation 5. strategies: what are the goals of the 4 P's? 6. Tactics- actions and programs to achieve the 4 P's
Price would not work as a successful point of differentiation if...
1. someone else offers the product at a lower price 2.your product does not satisfy consumers needs 3. (?)
How does satisfying a need differ from a "benefit'?
A benefit is something above and beyond offered by a product that is made to increase customer satisfaction but is not satisfying the initial need itself -part of the promotion piece of your product that is considered your "arsenal" rather than a determining dimension it is a qualifying.
What is an example of a current breakthrough product- what makes it breakthrough? What product category might be disrupted? For that category, how do you react to the breakthrough?
A breakthrough opportunity is a hard-to-copy strategy that will be very profitable for a long time. The tesla is an example of this because there are rising concerns for the environment and sustainable practices, so they developed battery technology with superior value that will be hard to copy bc of their research and development expertise.
Learning
A change in a person's thought processes caused by prior experience -often based on direct experience ex)tasting a Ben and Jerry's ice cream cone
Adopt the shopping experience to influence consumer behavior
A nice, white table clothed dinner will make a customer buy wine, desert, and a large meal while mcdonalds is just quick and cheap bc a shorter experience
Attitude
A person's point of view towards something -involve liking or disliking, so have some action implications -may have a positive attitude towards hot tubs, but no intention of buying one -positive attitudes towards brands who make greener choices
Under what conditions will a production mentality work, and when will it fail?
A production mentality may work with a breakthrough opportunity and if a company has come up with an idea that s unlike any other that the market has seen -because they have a monopoly, the specific needs of the customer are not as necessary to be considered -production mentality will fail when there is high competition in a market and consumers needs are already being perfectly matched
How does a segment differ from a target?
A segment takes a target one step further. Makes sure the target is operational and the similarities have practical implications for company use. Breaks down the market into smaller groups with the intention of promoting your product or service differently to each one.
When is the largest segment not always the best to pursue?
A smaller firm may have to use the single target market approach- focusing all its efforts at the one submarket niche where it sees the best opportunity -usually safer to be a SEGMENTER satisfying some customers very well instead of many just fairly well -although combining submarkets may drop costs due to economies of scale, customers prefer to have their needs satisfied more exactly and pay a higher price. -not worth it to pursue a large segment if isn't completely homogeneous within and some of the customers could be better satisfied by someone else
4 p's in order of importance?
ALL EQUALLY IMPORTANT BUT IF HAD TO RANK: Product- the physical good. If doesn't satisfy consumer needs, nothing else is important. Can achieve long term success by creating a product that fully meets target market's needs Place- have to get the product to who should be buying. Can achieve long term success by having product located and accessible to target market Promotion- Let them know about it. Continue to advertise and remind customers of your product and offer promotions to keep enthusiasm up Price- If too expensive for target, nothing else will matter. Long term success= satisfying price
What are the advantages and disadvantages to selective perception?
Advantages: -we screen out and modify ideas, messages, and information that conflict with previously learned attitudes and beliefs. So, if a customer previously believes that your brand is reliable and valuable, this could be an advantage because when faced with contradicting messages they won't even notice but will continue to generalize their positive beliefs about your brand Disadvantage: -if a customer believes that your brand in poor quality or unreliable, they may not may attention
Response
An effort to satisfy a drive -the specific response chosen depends on the cues and the person's past experience
Example
An example of a benefit differing from satisfying a need is buying a bottle of shampoo and additionally receiving another smaller sized travel bottle for no additional charge. Related to the marketing concept because the goal is satisfying a customer's needs better than the competition. So, if many companies can satisfy a customer's needs of dry hands, your company needs to do it better, so one way to get creative with that is throwing in a promotion.
Give a current example of a brand that is in need of repositioning
Android phones -current target: smart phone users -position: less-than-apple technology -should be: latest and greatest technology -USP: No one else offers technology that suits the hippest and newest of generations- Androids do this with our ultra light technology and super speed internet access
Breakthrough product
Apple airpods. Revolution bc first of its kind. May take business away from the beats company. Should react to this breakthrough by reassessing the competitive environment and what your company has to contribute that others do not. COMPETITIVE ADVANTAGE
Examples of dimensions of segmenting a target market
BEHAVIORAL: -rate of use (heavy, medium, light) -information requires (low, medium, high) -thoughts (favorable or unfavorable attitudes) GEOGRAPHIC: -size of city -region of world (US, Europe, etc.) DEMOGRAPHIC: -gender (male/female) -family size -ethnicity -social class
Why is repositioning so difficult?
Because selective attention and customers may never even look for what they need to see -requires changes to the marketing mix
Why is customer value important to consumer satisfaction?
Because when consumer's values are met, they will come back and buy more (market penetration) and talk to their friends about how good the product is (free marketing) -additionally, if a product provides a customer with what they want, they will be satisfied
What is the benefit in reducing purchase dissonance when a sale has already been made
Because you want to customer to have a pleasant all-around experience to influence their perception as a positive satisfaction of a drive and continue to make their purchases a habit- increasing brand loyalty and sales -influence beliefs -will not make the decision again if unhappy
Selective attention
Being overly impressed by facts that confirm our beliefs
Product market
Bikes, scooters, rollerblades-
How do they avoid the perception to the consumer that "all brands are alike'?
By relying on other aspects of the marketing mix such as a gas station that offers Seattle's best coffee as well -using promotions to really identify their unique selling point and what other sorts of benefits you can get from a certain product/company that others don't offer
When do you choose a single segment strategy vs. a multiple or combined market strategy
Combiners try to increase the size of their markets by combining 2 submarkets with similarities with one marketing mix. -look at various submarkets for similarities rather than differences -try to extend or modify their basic offering to appeal to these "combined" customers with just one marketing mix ex) a bike producer might try to develop a marketing mix that would do a pretty good job of appealing to both the exercisers and off-road adventurers -however, may not reach the best bike for each target -makes compromises -may help achieve some economies of scale -require less investment than developing different marketing mixes for different segments- making it especially attractive for FIRMS WITH LIMITED RESOURCES Segmenters aim at one or more homogenous segments and try to develop a different marketing mix for each segment -fine-tune their marketing mixes for each target-market (maybe making some changes to the product itself) because they want to satisfy each segment very well -believe that aiming at one, or some, of these smaller markets makes it possible to provide superior value and satisfy them better *provides better PROFIT POTENTIAL for the firm -customers will often pay a higher price if the whole marketing mix fits their values ex) expensive chair for executives
Which if any are warranted and why?
Concerns are justified if they break ethical norms or values because marketers are not just suppoed to serve their organizations but also act as stewards of society. Marketing ethics are the moral standards that guide marketing decisions and actions. Ethical norms: do no harm, foster trust in the marketing system, embrace ethical values. Ethical values: honesty (be forthright), responsibility (accept the consequences of our marketing decisions and strategies), fairness (balance justly the needs of the buyer with interests of seller), respect, transparency, citizenship (fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders. -macro concerns about society as a whole are justified because they could have lasting effects (either positive or negative) on the world we live in
Explain why it is difficult to get your target to notice and remember your message
Consumers only pay attention to brands and products that they believe fit their tastes or preferences -this is why many brands have tried to make marketing mixes that involve ecological interests bc consumers are concerned about making "greener purchases"
What are customer lifetime value and customer equity?
Customer lifetime value is the total stream of purchases that a customer could contribute to the company over the length of the relationship. Customer equity is the expected earnings stream (profitability) of a firm's current and prospective customers over some period of time. Guides to making decisions that enhance a firm's long-term profits. By estimating the impacts that different marketing strategies and programs have on customer equity, you can make decisions with long-run financial implications in mind. *would be enhanced if have larger lifetime value for each customer.
Define customer value and provide a real world example
Customer value is how much a customer cares about a certain aspect of a product. ex) a parent searching for a bike for their children will value durability and good price.
Why is the difference between discretionary and disposable income important to marketers?
Discretionary income is what is left of disposable income after paying taxes and paying for necessities -it is what is left to buy "luxuries" -this difference is important because if a population has a very small discretionary income, they probably won't be buying that million dollar yacht when they are worried about paying rent -can be elusive bc what is a "necessity" to one family may be a "need" for another ex) high-speed internet -buyer behavior is not as simple as economic value suggests
Name a recent product evolution. How do you know this is an evolution and not a revolution?
Earpods by apple. I know this is an evolution and not a revolution because it is product development where the company is offering improved/new products to the current market. Apple is simply maintaining its customers by offering them new ways to satisfy their specific needs while still being innovative.
Why do marketing strategy planners seek to increase them?
Easier to retain customers than find new ones. Increases long term profits.
What role do economic needs play in consumer buying decisions?
Economic needs: 1. Economy of purchase or use 2. Efficiency in operation or use 3. Dependability in use 4. Improvement of earnings 5. Conveinence -most consumers appreciate firms that offer them improved economic value for the money they spend. -but, improved value does not just mean offering lower and lower prices -convenience also plays a big role, as well as benefits in a product such as last longer
External influences
Economic, government, social, legal, political
Give three examples of a competitive barrier
Economies of scale -difficult for new, smaller companies to enter the market -geography- firms cannot enter unless they have access to specific resources ex)coal mining -brand loyalty: makes it difficult for new companies to penetrate the market share and create its own brand loyalty by taking others' customers ex) no-name-brand vs. tide
Social
Esteem, friends, belonging
What is the function of a product space map
Finding similarities within sets of data. -clustering groups customers who are similar on their segmenting dimensions into homogenous segments -use computers to do what was previously done with intuition and judgement ex) demographic characteristics, the importance of different needs, attitudes towards the product, and past buying behavior. *searches for all data of homogenous groups of people, see why they are clustered together, and suggest new or better marketing strategies ex) toothpaste market= sensory, sociable, worriers, value seekers *each one of these market segments calls for a different marketing mix (although some of the 4 P's may be similar)
Provide examples of how the declining U.S. middle class may affect marketing decisions in the U.S. for 3 different product categories
Food- families will want to have more economical meals that fill them up for less amount of money. Focus will be less on the ideal dining experience and more on the value of the meal itself. Cars- people will be in the market to buy cars that are more minimalistic and less extravagant Clothing- durable, clothing that is less about style and more about durability
Personal needs
Fun, freedom, accomplishment, and relaxation
Recent product evolution
Gradual change, adoption, or progression. A recent one would be the iPhone 7 because it isn't an overthrow of current phones but just offers slightly new benefits and aspects. Not a revolution because deed not forcibly overthrow the whole cell phone system but just offers a slightly new aspect for customers who are interested.
Micro concerns
Group/ individual needs ex) water (bottle) ex) food (tasty) -a strategy used to target a small segment of consumers with specific needs for products in the market -all advertising focused on a small group -how businesses capture customers and turn them into loyal -4 P's (product, promotion, place and price) -research takes a further look into the specific lifestyle and habits of consumers
What are 4 key features of a good segment?
Homogenous within- customers as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions. Heterogeneous between - customers in different segments should be as different as possible. Substantial- the segment should be big enough to be profitable. Operational- segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables.
Positioning
How customers think about proposed or present brands in a market. Marketers cannot completely control this. They know how he or she WANTS customers to think about the firm's marketing mix, but cannot ensure they will find out about the unique characteristics of their product -without a realistic view of how customers thinking about offerings in the market, its hard for a marketing manager to differentiate => research to find consumer's IDEAL BRAND and their views of current products in the market *sometimes called PERCEPTUAL MAPPING ex) soaps and what they do
Perception
How we gather and interpret information from the world around us. Bombarded with so many stimuli yet only notice so many because of: 1. Selective exposure: our eyes and minds seek out and notice only information that interests us ex) hungry= signs for restaurants 2. Selective perception: we screen out and modify ideas, messages, and information that conflict with previously learned attitudes and beliefs 3. Selective retention: remember only what we want to remember
How do competitive barriers affect strategy selection?
If a company does not see that they could have competitive advantage in a certain industry, they will choose one that will be more advantageous for their benefit and profit
Drive
If a need is not satisfied, it may lead to a drive -a strong stimulus that encourages action to reduce a need -internal: the reasons behind certain behavior patterns *a product purchase results from a drive to satisfy some need -study what consumer DRIVES, NEEDS, AND WANTS already exist and how they can be satisfied better
Example of how a threat for one company may be an opportunity for another
If one company has especially efficient technology that produces 0% emissions on the environment and another has more inefficient technology that produces a lot of emissions, if the government imposes a tax on emissions one companies threat could be the other's opportunity.
When might re-positioning be necessary
If research shows that target customers are not viewing the brand in the desired way. ex) Hyundia going from being seen as cheap to more value for your money by offering a warranty
Why is it important to consider both immediate and distant rivals when planning? (ch.3)
If you have a new product concept, the closest competitor may be a firm that is serving similar needs with a different type of product. So, although these firms may not appear to be close competitors, they are likely to fight back if a firm starts to take away its customers. -also, if only focus on immediate rivals, may not see a distant rival who could be taking away some of your potential target market
How is marketing important to you?
It accounts for 50 cents of the customer dollar. The ideas apply to a wide variety of situations including new ventures started by one person or big corporations. Additionally, consumers decide what is produced through their dollar "votes" as well as decide the price of a particular good or service based on how much it is valued. -We have freedom of choice for which goods we -marketing helps make sure consumers receive what they are in the market to buy -helps evaluate what customers need and how these needs are changing in a world with changing values and concerns
Why is that distinction between marketing and production important?
It is important to ensure that a company is meeting its customers needs, appealing to a certain group of meeting, and producing products that consumers will actually want. Production-oriented managers see every customer as the same as does not recognize individual needs and values. -marketing is NOT just production because the first step is always about the customer and what they want
What is wrong with "no one else offers this in purple- so that is our USP!"
It is not useful. Just because there is a difference in your product does not mean that it will satisfy a need in consumers
CHAPTER 5
LEGGO
Why is it important for marketers to understand how social influences, family, class, culture, ethnicity and purchase situation influence their target's needs and wants
Lifestyles help marketers paint a more human portrait of the target market -lets you understand what BENEFITS a consumer my seek from a marketing mix -a person may have several reasons for buying
How may a population shift change demand for a product
Location- if more of the population moves to cities rather than rural areas, they will need less tractors and large lawn mowers and more small lawnmowers Ethnic composition- if more people from Mexico move to the US, there will be more demand for products that use Spanish in their advertising Income- if people's income rises, there will be more demand for luxury goods such as coach bags and chanel purfume Age- if there are more old people in a population, demand for comfort shoes will increase
Selective exposure
Looking for and accepting only information sources that confirm and comfort our beliefs
Why do marketers avoid pure competition?
Marketing doesn't have as strong of an influence if each product is exactly the same because there is no competitive advantage
What is marketing NOT?
Marketing is NOT just advertising and selling. It is not just producing whatever you can and hoping it sells, but rather producing what a customer wants and will satisfy their needs.
What is marketing?
Marketing is activities that try to accomplish an organization's objectives by anticipating customer/client needs and directing goods and services that satisfy these needs from producer to customer/client.
How are different age cohorts affecting US culture?
Millennials: -putting more emphasis on experiences and less on material things -want smaller houses and travel more -more accepting -LOHAS= green movement -Macy's backstage Baby boomers: -largest % of pop. -traditionally neglected by marketers -now living longer/healthier lives and have more disposable income -more comfort
Brand that is adjusting to the new economic reality
Nike- lesser quality shoes for cheaper qualities
Belief
Not so action oriented - a person's opinion about something -may shape a consumer's attitude but don't necessarily involve any liking or disliking -"the sky is plaid" is an example of a belief
What role does reinforcement play in learning
Occurs when the response is followed by satisfaction- that is, reduction in the drive -strengthens the relationship between the cue and the response -may lead to a similar response next time the drive occurs *if a person's decision is reinforced by satisfaction, the decision process becomes habit and they modify their thought process to accommodate their satisfaction or displeasure
"outshouting" wont work
Outshouting your competition will not simply work because customer attitudes tend to be enduring -more economical for marketers to work with attitudes than try to change them
Customer equity
Overall profitability of all its customers over a period -LONG TERM PROFITS Total combined of all the consumer lifetime values a company has. - in deciding the value of a company, need to need to know how much its customer base is in terms of future revenues -marketers try to increase this as well as consumer lifetime value because it is easier to retain customers than attract new one. So, profits increase with greater customer lifetime value -short term benefits for companies: free marketing by satisfied customers talking to friends. Also, happy employees= happy customers
Provide an example of a company that was either positively or negatively affected by understanding or ignoring distant rivals
P&G was positively affected by understanding rivals and introducing a packaging that takes up less space and offers wholesalers and retailers better mark ups.
How does monopolistic competition differ from pure competition?
Products are slightly differentiated -marketing plays a larger role in this type of market because consumers can be influenced by differences that appeal more to their direct needs
Cue
Products, signs, ads, and other stimuli in the environment that cause an individual to choose a specific response
Consumer lifetime value
Relationships that develop satisfied customers and customers to purchase overtime = lifetime value of consumers. -prediction of the total net profit attributed to a company with a certain customer relationship
Why is it important to understand your company's strength and weaknesses as a first step to planning? (ch.3)
So it can have breakthrough opportunities and using their strengths while avoiding direct competition with firms who have similar strengths. -can identify where your company has competitive advantage and where they may have an opportunity to be successful -then can identify which consumers and target market they should try to appeal to
Provide an example of how each can influence a marketing decision
Social influences: (family, social class, reference groups) -marketers that help people connect with others inspire positive feelings about their own brands ex) Coco-Cola => delivering happiness=> creating social connections when share with family and friends Family: (share attitudes and beliefs, consider one another's attitudes; marital status, age, and children affect) -singles and young couples more willing to try new products and brands and are careful, price-conscious shoppers -younger families: acquiring durable brands -as children arrive: education, personal care, and medical -empty nesters: can spend money in various ways Social class: (group who have approx. equal position in society) -buy different brands -shop at different stores ex) Walmart=> economical shopper -reference group: people to whom an individual looks when forming an idea about a particular topic ex) Shaq=> nikes -opinion leaders (follow on social media to amplify reference group brands and opinions of opinion leaders) Culture and Ethnicity: -different set of attitudes and beliefs are important to consider ex) pepto busmal at china town=> they interpreted as calling their food "nauseating" -ethnic groups deserve special attention when analyzing markets -may have different ways of thinking ex) wells fargo= Spanish -language promotion
Macro concerns
Social responsibility -positive effects on society -group needs ex) environmental health ex)obesity -addresses issues at the nexus of marketing and society -mechanism that helps study opportunities and shortcomings of a society -examines the marketing process as a whole like the relationship between the production process and purchasing patterns of consumers *more concerned about marketing and social responsibilities, overall consumer behavior, market regulation laws, efficiency, socially admirable techniques, and social responsibilities. -will always target the MAXIMUM POSSIBLE CONSUMER BASE unlike micro -focuses on features such as advertising, product features, in-store availability and product type
How does production mentality hinder meaningful differentiation
Starting with a product-oriented definition of a market and how bar soaps compete against other bar soaps can make a firm miss more basic shifts in markets -positioning analysis usually focuses on specific product features and brands that are close competitors in the product-market -thus, product-oriented approach -important customer-related dimensions (including NEEDS AND ATTITUDES) may be overlooked and therefore not allow a company to really differentiate a customer ALSO, starting with a product-oriented approach can make a firm miss basic shifts in markets ex) bars have lost popularity to liquid soaps
Align the elements of the indirect and direct marketing environment with components of a SWOT.
Strengths are the positive internal aspects of a company such as unique capabilities or resources. Weaknesses are the negative internal aspects of a company such as what your competitors do better than you. Opportunities are the positive external factors such as what trends may positively impact you. Threats are the negative external factors such as what conditions may negatively affect you.
How can these dimensions change over time
Tastes and preferences of consumers. -snack food market= dieters worry about calories, health enthusiasts want nutrition, and economical shoppers want to be "filled up"
Need
The basic forces that motivate a person to do something -may involve a person's physical well-being
Qualifying dimension
Those relevant to INCLUDING a customer type in a product-market
Determining dimension
Those that actually affect the customer's purchase of a specific product or brand in a product-market ex) even if someone has enough money to buy a car and has a driver's license, they must still have a real need such as a job that requires wheels to buy. -determining dimensions related to the performance or appearances a customer wants could affect the specific car they purchase. ex) if safety is a determining dimension for a customer, a Volvo wagon that offers side impact protection, air bags, and all-wheel drive may be a customers first choice
What is the purpose of a SWOT?
To figure out what kind of market a firm wants to be in, what businesses it wants to exclude, what weaknesses it should avoid, and what resources or strengths/trends it should build on.
Why is it important to segment?
To see each customer as one-of-a-kind and having a unique set of dimensions.
Generic market
Transportation
What are the micro/macro concerns about marketing?
What is "good" for some firms and consumers may not be good for society as a whole. Free choice leads to conflicts and difficulties. Ex) plastic water bottles get sold, but lead to excess waste. Marketing managers and firms have an obligation to improve its positive effects on society and reduce its negative.
Why does "pointless" segmentation occur?
When a company finds a valid difference between 2 groups but it doesn't have a practical application. ex) pink tool kit
How is customer satisfaction linked to the marketing concept? Employee satisfaction? Profit?
When customer's needs are met, they are satisfied. When employees are happy, they provide better service to customers and customers are even more satisfied. When customers are satisfied they develop a relationship with the company and come back for life, creating even more profit for the company. "A customer is not a customer until they have bought twice."
How do you know when to stop?
When your target is now too small to be profitable
As a manufacturer with little to no competition should you spend to create customer satisfaction?
Yes, because if customers are not satisfied you will not make a profit, so new producers will enter the market and take the customers because you have not build the life-long relationship necessary to maintain loyal customers.
Adoption process
awareness, interest, evaluation, trial, decision, confirmation
Internal market influences
customer, company, competition
How does understanding the buying occasion and the amount of effort your target will put into their decision to buy impact marketing strategy
purchase situation: the purpose, time available, and location where a purchase is made -when a need is urgent, customers will be less inclined to evaluate a range of options and place more emphasis on speed and convenience ex) buying a tire when u have a flat Where: -excitement of an on-site auction may stimulate impulse buying -warehouse setting like sams club signals low-cost operations and price reductions *different purchase situations may require different marketing mixes- even when the same target market is involved
4 factors that influence the external environment
social, economical, legal, technological