Marketing Flashcards
(112 cards)
1
Q
is the study of how consumers-individuals, households, groups or organizations - decide to buy, use and dispose of goods, services, experiences and ideas to satisfy their needs and wants.
A
Consumer behavior
2
Q
It gives insights into what motivates a consumer to buy, what makes a consumer loyal to a brand, and how a consumer uses a product.
A
Consumer behavior
3
Q
Consumer Decision-making Process
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- Need Recognition
- Information Search
- Evaluation of Alternatives
- Purchase Decision
- Post-purchase Evaluation
4
Q
is influenced by the environment. The stimuli in the environment may motivate purchase or awaken the desire to buy.
A
buyer’s black box
5
Q
Stimulus Response Model of Buyer Behavior by (Kotler & Armstrong 2014)
A
Environment:
* Marketing Stimuli (4p’s),
* Other factors (Economic, Technological,
Social, Cultural)
Buyer’s Black Box:
* Buyer’s Characteristics,
* Buyer’s Decision-making
Buyer’s Response:
* Buying Attitudes & Preferences
* Purchase Behavior
* Brand & Company Relationship Behavior
6
Q
consists of five stages. There are instances when buyers may not need to go through all five stages.
A
consumer decision-making process
7
Q
It can be triggered by internal stimuli such as feeling thirsty or hungry. It can also be influenced by external stimuli such as when the consumers sees and advertisement of a new cell phone model.
A
Need Recognition
8
Q
In this first step of the consumer decision making process, the buyer recognizes a need or a problem.
A
Need Recognition
9
Q
When a consumer recognizes a need, he or she would then usually look for information about a product that can satisfy that need.
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Information Search
10
Q
Types of Source: Examples of Information Information
A
- Personal: Recommendation of friends &
family - Commercial: Advertisement, salespeople,
websites, shop displays - Public: Mass Media (product feature in TV
shows), consumer reviews - Experiential Sources: Actual handling &
examination of the product
11
Q
There is no single formula for consumers as they evaluate their alternatives. Some consumers would impulsively buy an item, while others would have several considerations such as budget, style, color or other specifications.
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Evaluation of Alternatives
12
Q
What to consider when evaluating alternatives?
A
budget, brand, and features.
13
Q
A purchase occurs once the consumer has decided on the product that he or she is buying.
A
Purchase Decision
14
Q
Two factors may play a role between purchase intention and purchase decision.
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Attitude of others
Unexpected situational factors
15
Q
comes when someone important to you, like your parents tells you to get the cheapest item instead of the one you prefer.
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Attitude of others
16
Q
plays a role for example, the specific model of the item you want is out of stock or the more expensive second choice is suddenly on sale.
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Unexpected situational factors
17
Q
In this stage, the consumer will evaluate if the product was able to meet his or her expectations or not.
A
Post-purchase Evaluation
18
Q
is any good, service or idea that is perceived by some potential customer as new, even if it may have been around for a while. Marketers want to know how consumers learn about products for the first time and how their interest develops to the adoption of new product.
A
New Product
19
Q
is the mental process an individual goes through from awareness of a new product to the decision to become a regular user of that product.
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Adoption process
20
Q
Stages of Consumer Adoption Process
A
Product: Awareness, Interest, Evaluation, Trial, Adoption
21
Q
In this stage, a consumer becomes aware of the product through an advertisement, or he or she may have heard about it from a friend.
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Awareness Stage
22
Q
In this stage, the consumer lacks information about it, he or she wants to know more through research
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Interest stage.
23
Q
This stage occurs when the consumer has enough information to consider buying the product.
A
Evaluation
24
Q
This stage allows the consumer to try the new product on a small scale for him or her to gauge the value of the product.
A
Trial stage
25
In this stage, the consumer deciders to purchase and use the new product.
Adoption stage
26
are the first ones who get their hands on any new product or technology. They are willing to take risks and try innovative products.
Innovators
27
are opinion leaders, they have a following and adopt ahead of the mainstream users but do so carefully.
Early Adopters
28
are people who adopt technology before the average person does.
Early mainstream adopters
29
adopt innovation only after a lot of people have already tried it.
Late mainstream adopters
30
are most traditional and will not adopt the innovation until it becomes the norm.
Lagging adopters
31
is a statement of the organization’s purpose and what it wants to accomplish in the bigger environment. It serves as a guide for the employees of the company.
MISSION STATEMENT
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is its long-term goal. It defines where the company wants to be in the future. It states how the future will look if the organization fulfils its mission. It gives the company and its employees a common goal that must be achieved through the collective efforts of everyone in the organization.
VISION STATEMENT
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consists of the components close to the company that directly affect its ability to maintain its position in the market and its capacity to serve its customers.
Micro-environment
34
The Micro Environment
* Competitors
* Customers
* Marketing Intermediaries
* Company
* Public
* Suppliers
35
decides on the company goals and objectives, strategies and policies. Its members usually have the final say in decision-making procedures within the company.
Upper management
36
manages the financial aspects of the company. Marketing works closely with this department to request budgets for its projects and other expenses. Other departments are also vital in ensuring that the marketing department is able to fulfil its goals and implement its projects.
Finance department
37
offer products belonging in the same product category or industry. They try to offer the most superior value to consumers to earn a bigger market share and gain more profit. To be able to counter competitors, companies must determine their competitive advantage and capitalize on it in their marketing efforts
Competitors
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provide the resources and materials needed by the company to manufacture goods and deliver services. Companies usually treat their suppliers as partners because of their role in the production process. Problems with suppliers can seriously affect the company.
Suppliers
39
are entities that help get the company’s products to its final consumers. These include resellers, distributors, and retailers. They help move the products from the manufacturer to the actual places where they are sold.
Intermediaries
40
are integral part of the microenvironment. Companies strive to build a good relationship with them to foster loyalty and repeat transactions. Providing value to customers is the key to a lasting customer relationship.
Customer
41
is any group of individuals that has an actual or potential interest in the company or its products .These individuals have the ability to create an impact on the company’s capacity to achieve its goals.
Public
42
Types of members of the public:
Financial public
Government public
Media public
Citizen-action public
Local public
General public
Internal public
43
Banks, Lending institutions, and stockholder make up the financial public
Financial public
44
government agencies that formulate regulations and provide permits for the conduct of the business
Government public
45
TV, radio, print or new media agencies
Media public
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environment protection to fighting minorities’ rights.
Citizen-action public
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the people within the immediate community here the company is located.
Local public
48
includes anyone who knows the company and anyone who can see the campaigns and products of the company.
General public
49
company’s employees, management and stakeholders who contribute in achieving the goals of organization.
Internal public
50
consists of the bigger factors that are beyond the control of the management. This includes demographic, economic, natural, technological, political and cultural forces.
Macro-environment
51
Most of the businesses in the previous paragraph offer specialty or expert services.
Service Business
52
Examples of Service Business
* Accountants
* Financial Planners
* Cleaning Crews
* Security Agencies
* Psychologists
* Lawyers
* Doctors
53
you must have seen a business in your community that sells products purchased from suppliers and/or companies that manufacture them. This business retails the products on a markup or some profit and effectively serves as a distribution channel for the products it sells.
Merchandising Business
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- Involves the scientific study of consumer behavior and the use of strategic placement of products on store shelves. For our purpose the focus will be on a simple merchandising business with buy and sell activities.
Merchandising Business
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In your community or village, you may know businesses that produce the goods they sell.
Examples: Include factory that produces biscuits or a company that produces ladies shoes and bags.
Manufacturing Business
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where they define their long-term goals. This plan requires business forecasting and foreseeing what the future may bring for your organization.
Strategic planning
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analyses the current situation, studies the industry, monitors the movement of the economy, and understand the capabilities of the company in order to come up with strategic plans.
Upper management
58
focuses on short-term specific actions in order to bring the company closer to established strategic plans. It details what needs to be done, by which department, and the tools or facilities needed to achieve the company’s goals.
Tactical planning
59
When is the country’s next election? How can this impact the business?
What are the existing laws that directly or indirectly affect the industry?
What are other political factors that the company can consider?
POLITICAL
60
How stable is the current economy? Is it growing, stagnating or declining?
What is the inflation rate? Does it have an impact on the sales of the product?
If the customer’s level of disposable income is changing, how is this affecting industry sales? If the disposable income drops, do the customers choose not to buy the product anymore?
How is globalization affecting the economic environment?
What are other economic factors that the company can consider?
ECONOMIC
61
Do consumer have a favorable image of the industry?
How would attitude shifts affect industry sale (e.g. customer’s preference for healthy choices?)
How do religious beliefs and lifestyle choices affect the population?
What are other sociocultural factors that the company can consider?
SOCIOCULTURAL
62
Are there new technologies that the company can take advantage of?
Do its competitors have access to new technologies that can improve their competitive advantage?
Are there technologies that the company’s competitors are using which the company still has yet to adapt?
What are the other technological factors that the company can consider?
TECHNOLOGICAL
63
PORTER’S FIVE FORCES ANALYSIS
1. Rivalry among existing competitors
2. Threat of substitute product
3. Threat of New Entrants
4. Bargaining power of buyers
5. Bargaining power of suppliers
64
Rivalry among existing competitors
Number of competitors
Customer Loyalty
Quality difference
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Threat of substitute product
Cost differences
Availability of substitute products
Convenience of buying substitute products
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Threat of New Entrants
Time and cost involved to enter the market
Requirements of specialist knowledge
Cost Advantages
Barriers to entry
67
Bargaining power of buyers
Number of customers
Differences between competitors and how
easily consumers can switch among them
Price sensitivity
68
Bargaining power of suppliers
Number of supplier
Uniqueness of products/materials being supplied
A company’s stability to substitute a raw material
69
marketers need _________ in order to get to know their customers better. Business owners need to study the viability and feasibility of their business before investing it.
Research
70
What are the things they want to know?
1. Target Location
2. Utilizing Marketing Insights
3. How can we gather customer insights?
4. Marketing Information (Collecting)
71
Target Location
a) Population density
b) Demographic characteristics
c) Behavior and Preferences
72
Companies need to gather insights from their customers in order to provide well-suited products and successful marketing campaigns for them.
Utilizing Marketing Insights
73
How can we gather customer insights?
a) DIGITAL TECHNOLOGIES
b) SOCIAL MEDIA
c) CONSUMER’S POST ON SOCIAL NETWORKING
74
can provide information that suits the needs of the management, but it may be able to provide needed data to trade partners such as suppliers, retailers, resellers and marketing agencies.
MARKETING INFORMATION SYSTERM (MIS)
75
Marketing Information (Collecting)
a) Internal Data
b) Competitive Marketing Intelligence
c) Marketing Research
76
can be built by collecting consumer and market information electronically.
ex: loyalty card
a) Internal Data
77
Is the systematic collection and analysis of publicly available information about consumers, competitors and developments in the market place.
COMPETITIVE MARKETING INTELLIGENCE
78
Its goal is to provide valuable information about consumers, competitors and the industry so management can carefully make strategic decisions based on actual trends and scenarios.
COMPETITIVE MARKETING INTELLIGENCE
79
COMPETITIVE MARKETING INTELLIGENCE includes:
observing customer behavior and reactions
casually chatting with customers on product effectiveness
monitoring online feedback and conversations of customers
benchmarking competitor’s products with the company’s own products
monitoring marketing activities and expenses of competitors
monitoring online engagement of competitors
80
From a business perspective, the Encyclopedia Britannica defines organization as “an entity formed for the purpose of carrying on a commercial enterprise.” It is predicted on systems of law governing contracts and exchange, property, rights and incorporation.
Organization
81
It is owned by a single person who makes all the decisions related to the business.
Sole or Single Proprietorship
82
A sole or single proprietorship has the following characteristics:
a. It is owned by a single person who makes all the decisions related to the business.
b. Its operations is highly dependent on the single person who owns it.
c. The source of funds for the business is limited either through one’s savings or through a personal loan from a bank.
d. If the person who owns the business gets sick or dies, the business most likely could not continue operating and would eventually close down.
83
Is a business organization composed of two or more individuals who have pooled their resources together to put up a business.
Partnership
84
as a recognized legal entity, a corporation has the same rights, duties and responsibilities as a person. It can own assets; enter into contracts; sue and be sued; hire and fire employees; make donations; loan and borrow money; and be liable for taxes, interests, and penalties. This is referred to as having a juridical personality.
Corporation
85
One Person Corporation
is composed of a single stockholder who can only be a natural person, trust or estate. Its term of existence is perpetual but in case of a trust or estate, the term shall be co-terminus with the existence of the trust or estate.
86
another type of corporation that is created without earning profits as its main agenda.
Nonprofit organization
87
Also called as "non-governmental organization"
Nonprofit organization
88
earn profits differently. Because their mission and goals are non-centered on profiting financially, they reap their rewards by accomplishing their goals in their particular endeavors, such as providing income to women in a community or increasing the retention rates of children who are in school.
Nonprofit organizations
89
regulates cooperatives in the Philippines as mandated by R.A. No. 9520.
Cooperative Development Authority (CDA)
90
“an autonomous and duly registered association persons with a common bond of interest, who have voluntarily joined together to achieve their social, economic and cultural needs and aspirations by making equitable contributions to capital required, patronizing their products and services and accepting a fair share of risks and benefits of the undertaking in accordance with the universally accepted cooperative principles.
Cooperative
91
is an entrepreneurial marketing strategy designed primarily to divide the market into small segments with distinct needs, characteristics, or behavior (Kotler and Armstrong, 2014).
Market segmentation
92
The commonly used methods of segmenting the market are
1. Geographic segmentation,
2. Demographic segmentation,
3. Psychological segmentation,
4. Behavioral segmentation
93
Geographic segmentation
1. Climate
2. Dominant ethnic group
3. Culture
4. Density whether rural or urban
5. Classification of the geographical unit (eg, first class or second class)
94
Demographic Segmentation
1. gender
2. age
3. income
4. occupation
5. education
6. religion
7. ethnic group
8. family size
95
The most widely used and easiest method of segmenting the market is the demographic method. Various researches have also determined that there exists a direct relationship between the demographic variables and the needs and wants of customers.
Demographic Segmentation
96
Psychological Segmentation
1. needs and wants
2. attitude
3. social class
4. personality traits
5. knowledge and awareness
6. brand concept
7. lifestyle
97
Behavioral Segmentation
1. perceptions
2. knowledge
3. reactions
4. benefits
5. loyalty
6. responses
98
POINTS TO CONSIDER IN SEGMENTATION
1. Accessibility of the market segment
2. Size of the market segment
3. Distinction of the market segment
99
The second stage in marketing is referred to as_________. It is the stage in which companies and firms actually select their target markets.
MARKET TARGETING
100
Types of market targeting strategies:
1) Individual or one-on-one marketing,
2) Segmentation marketing (differentiated or concentrated)
3) Mass or undifferentiated marketing
101
The _______ and ________ of the segment are considered favorable indicators to do good business in that particular location.
size and growth
102
the business provides a product that is suited or fitted to the particular need of the consumers. It is based on the concept that the consumers have different needs and wants
INDIVIDUAL or ONE-ON-ONE MARKETING
103
* Also referred to as segment marketing
* Companies make sure that their products cater to needs of particular segments in consumer markets.
DIFFERENTIATED
104
* Also referred to as niche marketing
* Company tailors its products or services to only one specific segment (niche).
CONCENTRATED
105
* Also referred to as mass marketing
* Companies tend to sell products with highly generalized features; those who deliberately choose to not focus on just one segment
UNDIFFERENTIATED MARKETING
106
simply refers to the act of occupying a certain place. In the field of entrepreneurship, it may either refer to the act of placing the business in a specific place in the industry or placing the product in a certain place in market.
positioning
107
refers to the process of arranging a product to occupy a clear, distinct, and desirable in relation to other competing products in the mind-set of the target consumer (Kotler and Armstrong 2013)
Market positioning
108
shows the position of similar products competing in the market as perceived by the customers.
positioning or perceptual map
109
The different products represented in the form of circles are plotted on the perceptual map as low or high in terms of ______ and _______. The size of the circle represents the ____________ of the product.
Price and Quality
Market Share
110
EVALUATING THE BENEFITS OF EVERY MARKET POSITION:
1) Identifiable.
2) Beneficial.
3) Distinctive advantage.
4) Efficient and rewarding.
111
The last phase of market positioning after differentiating the product from others in terms of benefit or attribute is to ___________________.
make a decision on where to position the product.
112
There are two basic dimensions that must be seriously considered in deciding the market position of the product.
Price & Quality
