BUSML 3250 - Chapter 3 and 5

environmental scanning

ongoing situation analysis that's focused on what's going on outside the company and how it will affect your company, suppliers and customers

Five Sources of Environmental Trends

social, economic, technological, competitive and regulatory

social forces

the demographic characteristics of the population and its culture

demographics

describing a population according to selected characteristics

multicultural marketing

combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races

value consciousness

the concern for obtaining the best quality, features, and performance of a product or service for a given price

disposable income

Income remaining for a person to spend or save after all taxes have been paid

discretionary income

the money that remains after paying for taxes and necessities

marketspace

an information and communication based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings

electronic commerce

the activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services

internet of things

the network of products embedded with connectivity-enabled electronics

pure competition

many sellers and each has a similar product

monopolistic competition

many sellers compete with substitutable products within a price range

oligopoly

few companies control the majority of industry sales

pure monopoly

only one firm sells the product

factors that drive competition

entry, the bargaining power of buyers and suppliers, existing rivalries, and substitution possibilities

barriers to entry

business practices or conditions that make it difficult for new firms to enter the market

regulation

restrictions state and federal laws place on business with regard to the conduct of its activities

Sherman Antitrust Act

First federal action against monopolies, it was signed into law by Harrison and was extensively used by Theodore Roosevelt for trust-busting. However, it was initially misused against labor unions

Clayton Act

forbids certain actions that are likely to lessen competition

Robinson-Patman Act

prevents unfair price discrimination by ensuring that the seller offer the same price terms to customers at a given level of trade

consumer behavior

study of consumers and the processes they use to choose, and dispose of products and services

self-regulation

an industry attempts to police itself

5 c's of marketing

interchangeable with the environmental scanning framework but focuses more on internal forces

company, context, customers, competitors, collaborators

what are the 5 c's

shareholder responsibility

about driving a profit

social responsibility

the duty of a business to contribute to the well-being of a community

purchase decision proess

foundational element of consumer behavior as it allows a company to identify the right ways to introduce consumers to their products

stages of purchase decision process

problem recognition, information search, alternative evaluation, purchase decision, post purchase behavior

problem recognition

identify new or existing consumer needs

information search

create product awareness and educate on benefits

alternative evaluation

help consumers make comparisons that address their important evaluatoin criteria

purchase decision

prompt consumers to purchase through coupons, incentives or samples

postpurchase behavior

encourage product usage and help them feel good about their decision to drive loyalty

cognitive dissonance

unpleasant mental experience of tension resulting from two conflicting thoughts or beliefs

involvement

the personal, social, and economic significance of the purchase to the consumer

situational influences that impact purchase decision process

nature of the purchase task, social surroundings, physical surroundings, temporal effects and antecedent states

consumer touchpoints

a marketer's product, service, or brand points of contact with a consumer from start-to-finish in the purchase decision process

customer journey map

A visual representation that captures customer experience across multiple touchpoints.

motivation

the energizing force that stimulates behavior to satisfy a need

personality

a person's consistent behaviors or responses to recurring situations

perception

the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world

selective exposure

occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent with them

selective comprehension

involves interpreting information so that it is consistent with your attitudes and beliefs

selective retention

a process whereby a consumer remembers only that information that supports his or her personal beliefs

subliminal perception

you see or hear messages without being aware of them

perceived risk

the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences

stimulus generalization

the tendency to respond to a stimulus that is only similar to the original conditioned stimulus with the conditioned response

stimulus discrimination

a person's ability to perceive differences in stimuli

behavioral learning

the process of developing automatic responses to a situation built up through repeated exposure to it

cognitive learning

making connections between two or more ideas or simply observing the outcomes of others' behaviors and adjusting your own accordingly

opinion leadership

individuals who exert direct or indirect social influence over others

word of mouth

influencing of people during conversations (most powerful)

reference group

the people to whom an individual looks when forming attitudes about a particular topic

types of buying decision

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior

complex buying behavior

high involvement, significant differences between brands (car)

variety seeking behavior

low involvement, significant differences between brands (clothes)

dissonance reducing buying behavior

high involvement, few differences between brands (furnature)

habitual buying behavior

low involvement, few differences between brands (salt and pepper)