Week 6 - Understanding Customers and Markets Flashcards
What are the five stages of the Consumer Decision-Making Process?
- Need/Want Recognition
- Information Search
- Evaluation of Alternatives
- Purchase Decision
- Post-Purchase Evaluation
Each stage provides opportunities for marketers to influence consumer behavior.
What triggers Need/Want Recognition in consumers?
Internal needs or external cues (e.g., advertising)
This stage identifies the gap between current and desired states.
What sources do consumers use during the Information Search stage?
- Internal sources (memory, experience)
- External sources (friends, reviews, websites)
Gathering information is crucial for informed decision-making.
What factors are compared during the Evaluation of Alternatives stage?
- Objective factors (e.g., price)
- Subjective factors (e.g., style)
Consumers weigh these factors to make a choice.
What influences the Purchase Decision stage?
- Availability
- Brand preference
- Payment options
These factors can sway the final choice.
What is Post-Purchase Evaluation?
Consumers assess their satisfaction and may experience cognitive dissonance.
This stage can lead to buyer’s remorse or doubt.
What are the levels of involvement in consumer decision-making?
- Habitual
- Limited
- Extended
- Impulse
Each level reflects the effort and significance of the decision.
What is Market Segmentation?
Dividing a broad market into smaller, more homogenous groups based on shared traits or needs.
This process helps in tailoring marketing efforts.
What is Target Marketing?
Choosing which segments to serve and tailoring the marketing mix accordingly.
Effective targeting is crucial for successful campaigns.
Define Positioning in marketing.
Establishing a clear, distinctive place for a brand in the consumer’s mind compared to competitors.
Effective positioning differentiates a brand in a crowded market.
List the four market segmentation variables.
- Geographic
- Demographic
- Psychographic
- Behavioral
These variables help in identifying target markets.
What are the criteria for effective segmentation according to MASP?
- Measurable
- Accessible
- Substantial
- Practicable
These criteria ensure that segments are viable for marketing.
What is Mass Marketing?
One strategy for all consumers (e.g., salt).
This approach treats the entire market as a single segment.
What is Differentiated Marketing?
Different strategies for different segments (e.g., Toyota’s range of car brands).
This strategy targets multiple segments with tailored approaches.
What is Niche Marketing?
Focus on a single, specialized segment (e.g., Porsche).
This approach targets a specific group with unique needs.
What does the Positioning Process involve?
- Analyze Current Position
- Determine Desired Position
- Develop Marketing Mix
This process aligns marketing efforts with brand perception.
What is the importance of aligning the marketing mix in Positioning?
To ensure a consistent, powerful brand image.
A cohesive marketing strategy enhances brand perception.
What trend is highlighted regarding sustainability in marketing?
Brands like Coles use refill stations to attract eco-conscious buyers.
Sustainability is becoming a key value for consumers.
What practical example is provided for targeting Gen Z?
Segment by age, values (sustainability), and behaviors (online shopping).
This example illustrates a targeted approach to marketing.
What is the role of customer feedback in Strategy?
Customer feedback and insights benefit strategic decision-making.
Understanding customer needs is essential for effective strategy.
