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80 Cards in this Set
- Front
- Back
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Consumer behavior |
Study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and desires |
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The marketing concept |
Process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create more satisfying exchanges than the competition |
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Corollary |
Success in the marketplace requires knowing, then attracting, satisfying, and retaining consumers. |
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Why study consumer behavior? |
1. Identify constomer needs and wants engaging in research 2. Understand how customers will respond to different messages and environments (learn and apply theories) 3. Anticipate where preferences are headed staying informed.
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False consensus |
Human nature leads us to believe that other people think like us |
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Stereotyping |
Perceive differences even when they don't exist |
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Consumer behavior process |
- Pre - purchase issue - Purchase issue - Post - purchase issue |
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Role theory of consumer behavior |
- Choosers - Communicators - Identify seekers - Pleasure seekers - Victims - Rebels - Activists |
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Variables in market segmentation |
- Demographics - Geographic - Psychographic - Behavioral |
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Demographics |
- Age - Gender - Social class, occupation, income - Ethnic group, religion - Stage in life - Purchaser vs. user |
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Geographic |
- Region - Country differences |
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Psychographic |
- Self-concept, personality, lifestyle |
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Behavioral |
- Brand loyalty, extent of usage - Usage situation - Benefits desired |
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Actors in the consumption play |
- Purchaser - User - Influencer - Organizations |
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Marketing segmentation |
Marketing segmentation is the process that marketers use to divide up the market into smaller segments that can be efficiently addressed. |
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Marketing cat. |
- Market segmentation - Market targeting - Market positioning |
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Market segmentation |
1. Identify the bases for segmenting the market 2. Develop profiles of resulting segments |
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Market targeting |
3. Develop measures of segment attractiveness 4. Select the target segment
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Market positioning |
5. Developing positioning for each target segment 6. Develop marketing mix for each target segment |
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Types of market segmentation |
1. Psychographic segmentation 2. Behavioral segmentation |
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Psychographic segmentation |
- Social class - Lifestyle - Personality traits |
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Lifestyle |
- The constrained - The middle majority - The innovators |
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Behavioral segmentation |
Segmentation upon knowledge, attitude, use, or response to a product
- Ocassion segmentation - Benefit segmentation - User status - Usage rate - Loyalty status - Buyer rediness stage - Attitude towars product |
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Multivariate segmentation |
Companies generally integrate ways of segmentation in the following manner |
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Types of multivariate segmentation |
- Simple - Advanced - Multistage
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Simple multivariate segmentation |
Gender and age |
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Advanced multivariate segmentation |
Geodemographic, lifestyle as well as behavioral |
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Multistage segmentation |
Use a combination of macro and micro segmentation |
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Characteristics that should be met |
- Consumers in the segment are similar to one another in terms of product needs, and these needs are different from customers on the other segments
- Important differences among segments can be identifyed
- The segment is large enough to be profitable
- Consumers in the segment can be reached by an appropriate marketing mix
- The consumers in the segment will respond in the desired way
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Requirements for effective segmentation |
- Measurability - Accessibility - Substainability - Actionability |
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Measurability |
Degree to which size, purchasing power and profits of a market segment can be measured |
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Accessibility |
Degree to which a market segment is sufficiently large or profitable |
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Actionability |
Degree to which effective programmes can be designed for attracting and serving the given segment. |
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Positioning |
Core strategy is the matching of company strengths and market opportunities |
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Components of core strategy |
1. Identification of group od customers to whom the company can clearly show it has a differential advantage
2. The firm needs to position its offerings in the customer's mind |
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Differentiating markets |
- Products - Services - Personnel - Image |
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Product differentiation |
- Features and benefits - Quality - Performance - Innovation - Consistency - Reliability - Style and design - Durability - Reliability |
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Services differentiation |
- Delivery - Installation - Repair services - Customer training centers - Consulting services - Speed of services |
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Personnel differenciation |
- Hiring - Training - Customer focused |
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Value postioning (differenciation) |
A range of positioning alternatives based on the value an offering delivers and its price |
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Types of value positioning |
- More for more - More for the same - The same for less - Less for much less - More for less |
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More for more |
Premium product and premium price, supported by a premium image E.g. Montblanc pens |
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More for the same |
Brand offering comparable quality at a lower price. E.g Lexus vs. Mercedes Benz |
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The same for less |
Value proposition e.g Amazon |
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Less for much less |
Trade off between luxury and necessity. 5 star hotel vs low cost one |
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More for less |
No name house brands vs. the big brands |
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Positioning strategies |
- Product attributes - Technical items - Benefits offered - Usage ocassions - Users - Activities - Personalities - Cult positioning - Origin - Positioned with synergistic products and brands - Positioned against competitors - Positioned away from competitors - Product class memebership |
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Product attributes |
Nokia's 6600 zoom |
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Technical items |
BMW breathable fresh air filters |
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Benefits offered |
Crest toothpaste reduces cavities |
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Usage occasions |
Kit Kat have a break |
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Users |
Johnsons&Johnsons changing focus to incorporate adults as frequent users of ther gentle Baby Shampoo |
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Activities |
Omega "the first and only watch on the moon" |
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Personalities |
Tiger Woods for Nike |
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Cult positioning |
Harry Potter Books |
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Origin |
Lanjarón |
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Positioned with synergistic products and brands |
Bentley and Breitling |
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Positioned against competitors |
Dell and Compaq against IBM |
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Positioned away from competitors |
7 - up the number 1 Un-cola |
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Product class membership |
I can't believe it's not butter, the vegetable fat spread |
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Choosing and implementing a positioning strategy |
- Unique selling proposition (USP) - Emotional selling proposition (ESP) |
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Unique selling proposition (USP) |
Unique product benefit that a firm aggressively promotes in an aggressive manner to its target market. The benefit usually reflects functional superiority: best quality, best services, lowest price, most advanced technology |
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Emotional selling proposition (ESP) |
Difficulty of mantaining functional superiority forces firms to attempt a more emotional influence. |
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Common and serious positioning errors |
- Under-positioning - Over-positioning - Confused positioning - Implausible positioning |
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Under-positioning |
A positioning error refering to failure to position a company |
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Over - positioning |
Too narrow a picture of a company, its products or a brand being communicated to target customers |
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Implausible positioning |
Making claims that the stretch the peception of the buyers to far to be believed |
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Criteria for a good positioning strategy |
- Feautures and benefits must be important to the consumer - Must be distinctive from the competition - Must deliver superior quality or service - Difference must be communicable and visible to buyers - Pre-emptive and competitors unable to replicate - Affordable - Profitable |
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Tools that help marketers |
- Relationship marketing - Database marketing |
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Relationship marketing |
Building lifetime relationships and bonds between brands and customers |
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Database marketing |
Tracking consumers' buying habits by computer and crafting products and information tailored specifically to people's wants and needs |
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Popular culture |
Marketers influence preferences for movie and music heroes, fashion, foods and decorating choices |
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Consumer brand relationships |
- Self - concept attachment - Nostalgic attachment - Interdependence - Love
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Ten principles of consumer protection in the EU |
1. Buy what you want where you want 2. If it doesn't work send it back 3. High safety standards for food and consumer goods 4. Know what you are eating 5. Contracts should be fair to consumers 6. Sometimes customers can change their minds 7. Making it easier to compare prices 8. Consumers shoul not be missed 9. Protection while you are on holiday 10. Effective redress for cross-border dispute |
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Marketing's impact on consumers |
- Do marketers create artificial needs? - Is advertising necessary? - Do marketers promise miracles? |
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Consumer behavior involves many different disciplines |
- Micro consumer behavior (Individual focus) - Macro consumer behavior (social focus) |
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Disciplinary focuses |
- Experimental psychology - Clinical psychology - Human ecology - Social pshychology - Sociology - Macroeconomics - Demography - History - Cultural anthropology |
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Perspectives on consumer behavior |
- Positivist persopective - Interpretivist perspective |
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Positivist perspective |
Currently dominates de field. Emphasizes the objectivity of science and the consumer as a rational decision-maker |
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Interpretivist perspective |
Subjective meaning of the consumer's individual experience and the idea that any behavior is subject to multiple interpretations rather than one single explanation |
