chapter 10, 11 Flashcards
Sketch model of buyer’s behavior and what is the goal of the marketer.
Marketer wants to understand how stimuli are changed to responses inside buyer’s black box. Marketing stimuli (4P) and Other Stimuli (Economic, Technological, Political, Cultural) are inputs for Buyers Black Box (Buyers Characteristics and Buyer decision process) which results in Buyer’s response (Product, Brand, Dealer Choice, Purchase timing and amount).
Which personal characteristic affect buyer’s behavior.
Cultural Factors (Achievement, success, activity, involvement, efficiency, practicality, progress, material comfort, individualism, freedom, external comfort, humanitarianism, youthfulness, fitness and health)
Social: small groups, family, social roles, status, and reference groups, pressure to conform
Personal: age, life-cycle stage, occupation
Psychological: Motivation (needs to seek satisfaction), Perception (form meaningful picture of world), Learning (arising from experience), Beliefs and Attitudes (mindset of liking or disliking things)
Sketch buyer’s decision process.
Problem Recognition -> Information Search -> Evaluation of Alternatives -> Purchase Decision -> Post purchase Behavior
What are available decisions and influences on industrial buyers?
Decisions – straight rebuy, modified rebuy and new task
Influences – Environmental, Organizational, Interpersonal and Individual
What is a marketing management process?
Marketing management process is a cyclical sequence of
1. analyzing market opportunities (analysis)
2. selecting target markets (planning)
3. developing marketing mix (implementation)
4. managing marketing efforts (control)
Which factors influence company’s market strategy? (sketch)
On the middle it Target Customer, surrounded by 4P, surrounded by market management process, surrounded by micro-environment (marketing channels, publics, competitors and suppliers), and finally surrounded by macro -environments (demographic-economic, technological, socio-cultural, political-legal).
Which technique is used to analyze market opportunities?
SWOT – Strengths, Weaknesses, Opportunities, Threats
What is marketing mix and what are four P of marketing mix? (sketch)
Marketing mix is a set of controllable variables that a firm blends in to produce desired response on the target market.
Product (Quality, Features, Style, Brand, Packaging, Size, Services, Warranties)
Price (List prices, Discounts, Allowances, Payment period)
Place (Channels, Coverage, Location, Inventory, Transport)
Promotion (Advertising, Personal Selling, Sales Promotion, Publicity)
What are 3 levels/attributes and benefits of product?
(sketch)
Core benefit or service (core benefit or problem-solving service that a product provides);
Actual product is the physical product;
Augment product are additional customer services and benefits build around the product.
Key tangible attributes:
Quality (product’s ability to perform its functions, durability, reliability, precision, ease of operation and repair),
features
design ( product’s style and function that is attractive, easy and safe, economical to produce and distribute).
Difference between product legal guarantee and commercial warranty.
Legal guarantee is dictated by law, so that product meets some requirements. Warranty is an extension of legal guarantee, company’s self-imposed additional services.
What is product line and how can it be stretched? (sketch)
Product line is a group of products that are closely related because they function in a similar manner, are sold to same customer group or are marketed through the same outlets.
With respect to price and quality/features it can be downward starched, upward starched or two-wat starched.
How can product mix be defined?
Product mix is set of all product lines and items that a particular seller offers. It can be defined by breadth (how many different product lines are there), depth (number of versions per product), length (number of items per product line) and consistency (how closely are product lines related). Each of these attributes can be modified to increase business.
What is a brand?
Name, term, sign, symbol, or design differentiating goods/services of one seller from competitors
Combination of rational and emotional criteria
Distinguish offerings, create identification and brand awareness, guarantee quality and satisfaction, segment market, create strong consumer loyalty, justify higher price
What is Brand Equity?
Value of brand, high brand loyalty, brand awareness, perceived quality, brand associations, proprietary brand assets.
What are advantages of not branding?
Lower production cost, lower marketing cost, lower legal cost, flexible quality control.
What is the purpose of packaging?
contain and protect product, marketing tool, attracting attention, describing product.
What are the functions of labels?
dentify product/brand, grade product, describe product, promote product through attractive graphics.
Product-Support Services Decisions
product-support services
Meet needs of target customers, augment actual products, differentiate products, add value to core product.
Consumer information, technical service, delivery and installation, customer training,
product-support services
Handle services effectively and efficiently, keep records of requests and complaints
Sketch and explain stages and sales and profit over product life cycle.
Product Development; Introduction; Growth; Maturity; Decline (Relaunch)
Initial profit loss, but when in growth stage profit is positive. Sales start with introduction stage.
What are buyer’s readiness states?
Awareness -> Knowledge -> Liking -> Preference -> Conviction -> Purchase
What is market analysis, planning, implementation and control? Sketch control process.
Market analysis is a process of analyzing company’s strengths and weaknesses, as well as available actions.
Market planning involves deciding on marketing strategies that will help companies’ strategic objectives.
Whereas market planning addresses what and why, implementation addresses who, where, when and how.
Control is a process of measuring and evaluating results of marketing strategies and plans and taking corrective actions to ensure that marketing objectives are attained.
What do we want to achieve? -> What is happening? -> Why is it happening? -> What should we do about it?
Classify and subclassify marketing environment?
Micro environment consists of forces close to the company: company, suppliers, marketing intermediaries, customers, competitors and public.
Macro environment includes larger societal forces that affect whole microenvironment : demographic env, economic enc, natural env, technological env, political env.
What are internal and external factors when making price decisions.
Internal factors are marketing objectives, marketing mix strategy, cost and organization for pricing.
External factors are nature of market and demand, competition and other environmental factors.
What can be marketing objectives?
Survival, Current Profit Maximization, Market share leadership, Product quality leadership or other objectives.
