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29 terms

Terms Definitions

Consumer Behavior

The behavior that consumers display in searching for, purchasing, using , evaluating, and disposing of products and services that they expect will expect will satisfy their needs.

The acts of individuals directly involved in obtaining and using economic goods & services including the decision-making processes that precede & determine those acts. -focuses on the individual (families and households) -what ,why, when, where, how :they buy it; and how often do they use and evaluate it. Two Types of Consumers I)Personal Consumer: Buy products for own personal consumption II) Organizational: Buy products to help them make money People who buy goods and services for his or her own personal or household use (or as a gift). Includes profit and non-profit, gov't , institutions, hospitals, schools, prisons etc. Time period from the 1850- 1920's; focus on manufacturing as many products as possible nevertheless, demand always exceeded supply. 1930's- 1950's Eventually manufacturing was able to improve so much that they were able to product more than the demand; so to get rid of products companies developed aggressive sales techniques. 1950's- now. The era where marketers determine the wants and needs of the customers better than the competition and any profits are a reflection of progress.

Personal consumer

Organizational consumer

Production Orientation

Sales Orientation

Marketing Orientation

ex. Colonel Sanders started a roadside business coupled with motels and re-positioned the "traditional" motel; and the "franchising" business model. Societal Marketing Concept Products that not only satisfy the wants and needs of the customers, but also benefits them and society as a whole( local, regional, or even the world). The process and tools used to study consumer behavior; what products to sell to different markets and how to do it. Find and secure consumer's wants and needs, making a custom offer to each group, and playing off psychographics to make an offer that speaks to them. The process of dividing a market into subsets of consumers with common needs or characteristics. Due to the fact that companies have limited resources, this allows the company to pursue the most attractive segments. The development of an distinct image for a product or service that will speak to the target market. Using: benefits and unique selling proposition (what is unique about this product.) Marketing Mix Consists of a company's offerings to consumers and the methods and tools it selects to accomplish then exchange. 1) Product 2.) Price 3.) Place 4.) Promotion Customer Relationship In order to stay in business, and keep in business, companies must use their customer(s) to their full potential This includes: Customer Satisfaction Consumer Trust (Primarily word of mouth)

Consumer Research

Segmentation, targeting and positioning

market segmentation

market Targeting

Positioning

and Customer Retention . Customer value The ratio between the customer's perceived benefits and the resources used to obtain those benefits. Very subjective, and often difficult to determine the ratio for different target markets. Making an offer that reflect's the best bang for the buck. This includes recognizing trends ( indivualism, choice overload, hiving, and geek chic); creates customer expectations about the product. The individual's consumer's perception of the performance of the product or service in relation to his or her expectations. In order for company's to achieve this, they must live up to past experiences and strive to improve upon this. Customer Delight A business opportunity for the marketer to gain a person's loyalty after a bad experience with the company; To do this, the marketer must exceed the customer's expectations. Customer Retention Policies designed in the best interest of the customers and to keep the best customers to return. 1. ) It is cheaper to keep the old ones, rather than attract new ones. 2.) Less Price Sensitive 3.) serving old customers is easier because they know the "ropes" 4.) Old customers tend to spread word of mouth advertising. One- to- one marketing Customized products, services, or promotions aimed at one or a small group of customers; especially if the customer is highly profitable. Tracks costs and revenues of individual customers and categorizes them into tiers. 1) Platinum- Not price sensitive, willing to try new offers

Value Proposition

Customer satisfaction

Customer Profitabilityfocused marketing

2) gold - heavy users, more discounts, and buy from several providers 3) Iron- Spending volume and profitability do not merit any special treatment other than the company's standards 4) Lead- Cost the company money because they demand attention more than what what they buy, tie up company resources, and spread negative word of mouth. Impact of Technologies on Marketing Strategies 1) Able to shop around for a good deal; so offers must match competitors or counteract it with something extra. 2) Can easily find product reviews 3) Marketers need to add more product options A method that enables a store to develop and deliver more customized messages to increasingly small market segments on an ongoing basis. Every marketing manager operates with a model of the consumer in mind; Prime minister of Australia Describes people who has high disposable income but very little leisure time; dual-income houses with both parents working ex Whole foods uses fresh, organic, pre-packed meals to just take home Responses of Interest 1. Procurement Behavior (obtaining a good or service): spatial behavior 2. Consumption Profile (How we use it, eat it & how does it relate- complimentary or substitute) 3. Decision Making (reaction & response to a need) 4. Post- Consumption Activities ex social media, word of mouth etc. Diversity No one's needs & wants are the same; Indentifying & accounting for processes 1) Individual Level Factors: Demographics, gender, personality, age, psychology

Narrowcasting

John Howard

Poverty of Time

2) Group-level determinants: Cultural & social influences 3) Situtational Factors: Characteristics of the moment (attitude, state of mind) - Russel Belk Frugal Fatigue, promoting elitism, & culture of envy People want prestigious products but cannot afford them so they buy substitute products & envy the rich that can afford the real thing.