MRKT Unit 2 Key Terms and Concepts

the buying behavior of final customers

all individuals and households that buy goods and services for personal consumption

exerts social influence on people in the reference group because of special skills, knowledge, personality, etc.

online social communities where people exchange information and opinions (ex. Instagram)

the process by which people select, organize and interpret information to form a meaningful picture of the world

changes in individuals behavior arising from experience

first stage of buyer decision process; customer recognizes a problem or need

second stage of the buyer decision process; customer is motivated to search for more information

third stage of the buyer decision process; the customer uses information to compare brands in the choice set

fourth stage of the buyer decision process; the customer purchases the product/service

fifth stage of the buyer decision process; consumer take further action based on their satisfaction or dissatisfaction

buyer discomfort caused by post purchase conflict

sum of ongoing experiences consumers have with a brand that affect their buying behavior, engagement, and brand advocacy over time

takes more time to plan, more decisions need to be made, usually more expensive; ex) dream vacation

inexpensive, few attributes, and short purchase decision time; ex) can of beans

losses loom larger than gains; ex) a product that is marketed to work 95% of the time will attract more buyers than a product that is marketed to fail 5% of the time

consumers use reference points when making judgements

Allows marketers to understand, appreciate and predict/influence potential customers

personal, situational, psychological, and social

To determine how to sell the product to customers; For instance, it would take more convincing for a customer to buy their dream vacation compared to a can of beans. So more money would need to be put into ads for the dream vacation.

1. Need recognition

2. Information search

3. Evaluation of alternatives

4. Purchase decision

5. Post Purchase Behavior

people feel obliged to give back to others; ex) if the server provides the table with a mint along with the bill, their tip will most likely increase

people feel the need to get their share before the product is all gone; ex) toilet paper at the beginning of COVID

people prefer to say yes to people they like; ex) if the author of a book includes a personal message, you’ll be more likely to recommend the book and maybe buy more copies to give out to people

people will look to the behavior of others to determine their own actions; ex) if you go into an empty drive thru, you’ll likely see cars enter in behind you

To determine who the market is and how to sell the product so it’s appealing to their target market

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

a set of buyers who share common needs that a company decided to serve

size/growth, structural attraction, and skills/strength

1. Understand the benefits the customers seek

2. Partition the market and develop prototypical customer profiles based on those benefits

3. Find observable variables that discriminate among the benefit segments

benefits sought, behavioral, demographic, geographic, psychographic, and business to business

dividing the market into segments according to different benefits that the customer seeks from the product

dividing the market into segments according to observable variables like age, gender, religion, etc.

divides the market into segments according to personality and lifestyle

divides the market according to usage, occasion, user status, usage rate or loyalty status

arranging the market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers

To (target segment and need) our (brand) is (concept) that (point of difference); summarizes company/brand positioning

the full positioning of a brand - the full mix of benefits on which it is positioned

gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices

undifferentiated; whole market in one offer

concentrated; large share of one or a few segments

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; local and individual marketing

form of micro-marketing that tailors to cities, neighborhoods and even specific stores

What a company does to make their product/service unique and better than competing offerings

It gives the customer a reason to buy the offering over all other offerings

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

activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership if anything

basic benefits gained from buying the product/service

the features the product/service offers

peripherals for the product; ex) warranty, delivery, manual, etc

bought by the final consumer for personal consumption

bought frequently, immediately, and with minimal comparison and buying effort

product that is usually compared on attributes like suitability, quality, price and style

unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

services cannot be seen, tasted, felt, heard, or smelled before they are bought

a.k.a. variability; ex) Shawn Mendes’ concerts vary from night to night

the services perish

differential effect that knowing the brand name has on customer response to the product or it’s marketing

total financial value of a brand

a brand created and owned by the reseller of the product; ex) Cheerios

practice of using an established brand names of two different companies on the same product

extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

applying an existing brand name to a new product in a different product category; a.k.a. brand extension

introduction → growth → maturity → decline

new product is first distributed and made available for purchase

sales start climbing quickly

sales growth slows or levels off

sales fade away

product, price, place, promotion, people, process, physical space and productivity