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Flashcards in Test 2 Deck (99):
1

Social Influences to decisions

Family members, opinion leaders, reference groups

2

Types Reference groups

Primary
Secondary
Aspirational reference group
nonaspirational reference group

3

Why are reference groups important to marketers?

Serves as information sources
influence perceptions
Affect individual's aspiration levels

4

Opinion leaders

First to try new products and services out of pure curiosity.

5

Family Process Roles

Initiators
Influences (children)
Decision makers
purchasers
consumers

6

Individual Influences to decisions

gender
age
life cycle
personality
self concept
lifestyle

7

Self-concept

Ideal self-image and real self-image

8

Psychological Influences to decisions

perception
motivation
learning
Beliefs and attitudes

9

Perception

Selective Exposure
Selective Distortion
Retention

10

Selective Exposure

Consumer notices certain stimuli and ignores others

11

Selective distortion

consumer changes or distorts info that conflicts with feelings/beliefs

12

Selective retention

conssumer remembers only info that supports personal beliefs

13

Marketing implications of perception

Important attributes
Price
Brand names
quality and reliability
subliminal perception

14

5 Trends in B2B internet Marketing

Content Marketing
Social Media
Online communities - show thought leadership and build brand image
Disintermediation - elimination of wholesalers or distributors
Reintermediation - new intermediaries being added (middle men)

15

Disintermediation

elimination of wholesalers or distributors

16

Reintermediation

new intermediaries being added (middle men)

17

Use of online communities

show thought leadership and build brand image

18

What is needed for success with alliances

commitment and trust

19

forms of strategic alliances

licensing or dist agreements
joint venture
partnerships
research and development consorita

20

4 major categories of business customers

producers
resellers
governments
insititutions

21

North American Industry Classification Systems (NAICS)

Classifies North American businesses

22

Uses of NAICS

To determine consumer....

23

Experiential Learning

Experience that changes behavior

24

Conceptual Learning

Not learned through direct experience

25

Factors for level of consumer involvement

previous experience
interest
perceived risk of neg. consequences
situation
social visibility

26

Types of Demand

Derived
Inelastic
Joint
Fluctuating

27

Derived demand

demand for business products results from demand for consumer products

28

Inelastic Demand

a change in price will not affect change in demand

29

Joint Demand

Demand for one item will be affected since multiple items are used to make final product

30

Fluctuating demand

demand for business products is more unstable than consumer products.

31

Multiplier Effect (Accelerator

A small change in consumer demand will greatly affect need for business products.

32

Business buying behavior aspects

Buying centers

33

Buying centers

People in organization involved with purchasing

34

Buying center roles

Initiators
Influencers
Gatekeepers
decider
purchaser
user

35

Gatekeepers

Control the flow of information

36

Buying center evaluating criteria

Quality
service
price

37

3 buying situations

new buy
modified rebuy
straight rebuy

38

Modified rebuy

purchaser wants some change to oirginal good

39

Straight rebuy

purchaser reorders the same good without looking for new information or info on other suppliers

40

Need recognition

Result of an imbalance between actual and desired states

40

Need recognition

Result of an imbalance between actual and desired states

41

Consumer Decision Making-Process

1. Need recognition
2. Information Search
3. Evaluation of alternatives
4. Purchase
5. Postpurchase behavior

42

Internal information search

Recollecting information stored in memory

43

External Information Search

Seeks information in the outside environment.

44

What are the types of external information search?

Nonmarketing-controlled
Marketing-controlled

45

Nonmarketing-controlled information sources

A product information source not associated with marketers promoting a product. ie. Experiences, people, public reviews

46

Marketing-controlled information search

Bias towards a product because of marketers promoting that product

47

What influences a consumer to conduct external research?

Perceived risk
Knowledge/confidence
Prior experience
level of interest

48

Evoked set/consideration set

Consumer's most preferred alternatives

49

Brand extension

A well-known brand name goes into another product category

50

Low-involvement products

Frequently purchased products associated with with a routine response behavior

51

Limited Decision Making

Consumer has product experience but unfamiliar with the current brands. Low-involvement but higher than routine decision.

52

When do consumers use extensive decision making?

When the product is unfamiliar, expensive or infrequently bought. High involvement.

54

Types of risk

Financial Risk
Social risk - peer opinions
Psychological risk - wrong decision will create concern or anxiety

55

Types of high involvement

Product
Situational
Involvement
Shopping
Enduring
Emotional

56

Product Involvement

The product has high personal relevance

57

Situational involvement

A situation that causes a low-involvement decision to become a high-involvement decision.

58

Shopping Involvement

When shopping is a mission not a leisure activity

59

Enduring involvement

Ongoing interest in some product or activity

60

Emotional involvement

How emotional a consumer gets during a specific consumption

61

How do you market low-involvement pruchases?

In-store promotions
Package design
Good display
Coupons
Linking to a higher-inlvolvment issue

62

Reference Group

Groups that influence the buying behavior of an individual

63

Primary membership group

The groups that interact with the person regularly ie. friends, family

64

Secondary membership group

People associate with the group less consistently and more formally. ie clubs

65

Aspirational reference group

A group a person would like to join

66

Strategic Alliance

a cooperative agreement between business firms

67

Market segment

a subgroup of people or organiations sharing one or more characteristics that make them have similar product needs

68

market segmentation

dividing the market into similar identifiable groupsfffffffffffffffffffffffffff

69

What is a market

1. group of people or organizations
2. Has needs or wants
3. has the ability and willingness to buy.

70

Why do marketers segment markets?

1. Identify groups of customers w/ familiar needs and analyze the characteristcs and buyer behavior
2. Provides info to make marketing mixes
3. consistent w/ marketing concept of satisfying customer wants and needs while meeting org.'s objectives.

71

4 criteria for market segments

1. substantality - segment must be large enough
2. Identifiability and measurability
3. Accessibility - how easy to communicate w/
4. Responsiveness

72

Types of segmentation

Geographic
Demographic
Benefit
Usage-Rate
Psychographic

73

Psychographic segmentation variables

Personality
Motives
Lifestyles
Geodemographics

74

Benefit segmentation

Grouping based on benefits customers seek from product

75

Usage-rate segmentation

Divides according to amount of product bought or consumed

76

80/20 principle

20% of all customers generates 80% of all the demand

77

satisficers

Places the order with the first familiar supplier that satisfies prodcut and delivery requirements

78

Optimizers

Considers numerous suppliers, solicit bids, and studies all proposals carefully before selecting one.

79

Steps to segment market

1. Select a market
2. Choose a base or basis for segmenting
3. Select segmenting descriptors
4. Profile and analyze segments
5. Select target markets
6. Design, implement and maitain marketing mixes

80

Target marketing strategies

Undifferentiated targeting
Concentrated targeting
Multisegment targeting

81

Undifferentiated targeting strategy
Advantages/disadvantages

Market has no segments. Usually works when no competitors or so basic like flour
Advantages: Saving on production and marketing
Disadvantages: Unimaginative products, susceptible to competition

82

Concentrate targeting
Advantages/disadvantages

Selects a market niche
Advantages: Concentration of resources, better meet needs, allows small firms to compete w/ large, strong positioning
Disadvantages: segments are too small or changing, large firms may become better at marketing to the niche

83

Multisegment targeting
Ad./dis

Developing a distinct marketing mix to serve different market segments
Benefits: greaters sales, volume, profits and economies of scale
Dis: Higher costs, cannibalization

84

Repositioning

Changing consumer perceptions of a brand in relation to competing brands

85

Secondary Data

Data Previously collected for purposes other than the one at hand

86

Types of errors

Measurement
Sampling
Frame
Random error

87

Convenience Product

Inexpensive item that doesn't require much shopping effort

88

Shopping products

more expensive product found in fewer stores. Lots of comparing is inovlved to make sure its good

89

Specialty Products

Products that have very few substitutes that the consumer is willing to use.

90

Unsought product

A product that the buyer doesn't actively seek

91

Product item

a specific version of a product in a product line

92

product line

a category of products

93

Benefits of organizing related items into product lines

Advertising economies
Package uniformity
Standardized components
Efficient sales and distribution
Equivalent quality

94

Product mix width

number of product lines

95

product line depth

Number of items in product line

96

Types of modification

Quality
Functional
Style

97

Brand equity

Value of the company and brand names

98

global brand

Brand that obtains at least a third of its earnings from abroad

99

Brand Loyalty

A consistent preference for one brand over all others