Test 2 Flashcards
(28 cards)
External factors of SWOT
Macroeconomic matters
Technological change
Legislation
Sociocultural change
Consumer decision making process
Need recognition Information search Evaluation of alternatives Purchase Postpurchase behavior
How to stimulate need recognition
Suggestions by sales associates Advertising Visual merchandise Special events in stores Signage Displays
Information search: internal
Memory
Marketing activities
Information search: external
Marketing controllers source
Non marketing source
(Personal experience, public sources)
Hoe consumers can reduce cognitive dissonance
Find information that reinforces the purchase
Avoid information that contradicts the purchase
Revoke the decision and return the product
How marketing can minimize cognitive dissonance
Effective communication
Follow up
Guarantees
Warranties
Types of consumer buying decisions
Routine response behavior
Limited decision making
Extended decision making
Low involvement marketing strategy
Maintain product quality
Avoid stock outs
Reduce cognitive dissonance
High involvement marketing strategy
Use comparative ads
Personal selling
Perception define
Process by which we select, organize and interpret various stimuli into meaningful picture
Selective exposure
Consumer notices certain stimuli and ignores it
Selective attention
Consumer focuses on a specific object and ignores the surroundings
Attraction effect
One choice becomes more attractive when a product that is inferior is added to the choice set
Compromise effect
One choice becomes more attractive when a product with more extreme product attributes is added to the set
A market is..
People with needs and the ability and willingness to buy
Importance of market segmentation
Markets have a variety of product needs and preferences
Can better define customer needs
Can define objectives and allocate resources more accurately
Segmentation bases
Characteristics of individuals, groups, or organizations used to divide a total market into segments
Criteria for segmentation
Sustainability
Identifiable/measurable
Accessible
Responsiveness
Sustainability
Must be large enough to warrant special marketing mix
Responsiveness
Unless segments respond to a marketing mix differently, no separate treatment is needed
Bases for segmenting consumers
Geography
Demographics
Psychographics
Benefits
Usage rates
Benefits of CRM
Customer retention
Upselling
Cross selling
Share of customer wallet
Costs of CRM
IT infrastructures
Process change
