Marketing Concepts, Frameworks, and Consumer Behavior

Comprehensive vocabulary flashcards covering marketing orientations, B2B/B2C purchase behaviors, sensory perception, cultural dimensions, STP strategies, and strategic decision matrices based on the lecture notes.

Product-Oriented Strategy

A business orientation focused on creating the best possible product under the assumption that customers will naturally want it ("Build a better mousetrap").

Sales-Oriented Strategy

A business approach that emphasizes aggressive selling and promotion to move products, often without a deep understanding of customer needs.

Customer-Oriented Strategy

A business approach recognizing customer needs and wants as central, designing products and strategies directly around them.

Relationship-Oriented Strategy

A modern marketing strategy focused on building long-term, mutually beneficial relationships with customers based on trust and continuous value delivery.

The 5 C's of Marketing

The situational analysis framework comprising Customer, Company, Context, Collaborators, and Competitors.

STP Framework

The strategic foundation of marketing consisting of Segmentation, Targeting, and Positioning.

The 4 P's of Marketing

The tactical tools in marketing strategy consisting of Product, Price, Place, and Promotion.

Customer Involvement

The level of thought and effort a consumer puts into a purchasing decision, categorized into low, moderate, and high involvement.

Customer Involvement Matrix

A framework mapping customer involvement (Low, Medium, High) across B2C purchases (Convenience, Shopping, Specialty) and B2B purchases (Straight Buy, Modified Buy, New Buy) alongside consumer actions.

Consideration Set

The list of candidate brands a consumer builds and is willing to evaluate during the pre-purchase stage.

Initiator (B2B Buying Center)

The person in a B2B organization who recognizes the problem or need and starts the search for a solution.

Gatekeeper (B2B Buying Center)

The individual who controls the budget and access to resources, responsible for approving business spending.

Convenience Purchase

A B2C product that customers buy frequently and with little thought, such as everyday staples like bread and milk.

Shopping Purchase

A B2C purchase requiring moderate comparison and consideration across several alternatives before making a decision.

Specialty Purchase

A B2C purchase involving high customer involvement because the product is expensive, important, or unique.

Straight Rebuy

A B2B purchase scenario where a business routinely and repeatedly purchases the same product or brand with little thought.

Modified Rebuy

A B2B purchase situation where a business evaluates changes or considers alternative suppliers, requiring moderate consideration.

New Buy

A B2B purchase made for the first time, requiring extensive research, careful evaluation, and high decision effort.

Installations

A category of B2B products consisting of expensive, long-lasting equipment used for new factories or large business operations that are bought infrequently.

Perceptual Fluency

The phenomenon where subtle aesthetic elements like colors, fonts, and design affect how easily people process and perceive a message without conscious awareness.

Subliminal Advertising

Marketing messages presented so quickly or subtly that consumers do not consciously notice them, intended to influence the subconscious mind.

Maslow's Hierarchy of Needs

A motivation theory categorizing human needs into five hierarchical levels: Physiological, Safety, Belonging, Esteem, and Self-Actualization.

Non-Compensatory Decision Process

The first stage of consumer choice where brands lacking mandatory "must-have" attributes are quickly eliminated from consideration.

Compensatory Decision Process

The second stage of consumer choice where remaining brands are evaluated using trade-off logic, allowing a strong score in one attribute to offset a weakness in another.

Power Distance

A Hofstede cultural dimension measuring the degree to which a society accepts inequality and formal hierarchical authority.

Uncertainty Avoidance

A Hofstede cultural dimension reflecting how comfortable or uncomfortable a culture is with ambiguity, change, and structured rules.

Conspicuous Consumption

The practice of buying and displaying luxury products with visible branding to demonstrate wealth and success, commonly seen in nouveau riche consumers.

One-to-One Marketing

An extreme form of segmentation where each individual customer serves as his or her own distinct market segment.

Niche Marketing

A segmentation strategy where a company strategically targets a small market segment with highly specific needs that the company can serve exceptionally well.

VALS Framework

A psychographic segmentation system that categorizes consumers based on three primary psychological motivations: Ideals, Achievement, and Self-Expression.

Cluster Analysis

A statistical technique used by marketers to group customers with similar demographic, geographic, psychographic, or behavioral traits into distinct segments.

Breadth Strategy

A targeting strategy where a company offers a single product designed to reach multiple market segments.

Depth Strategy

A targeting strategy focused on serving a single market segment deeply with multiple tailored products.

Tailored Strategy

A targeting strategy that involves creating customized, distinct products for different market segments.

Market Attractiveness Matrix

A strategic evaluation tool comparing Corporate Strengths against Market Attractiveness to guide investment decisions into "Go for it!", "Hmm…", or "Avoid".

SWOT Analysis Matrix

A strategic planning tool (Figure 4.2) that categorizes internal corporate factors (Strengths, Weaknesses) and external environmental factors (Opportunities, Threats) as favorable or unfavorable.

TOWS Analysis

A strategic framework variant that analyzes external environmental factors first to ensure strategy formulation is anchored in the external market.

Market Sizing Chain Formula

The top-down estimation logic for overall product demand expressed as $\text{Population} \times \%\text{aware} \times \%\text{trial} \times \%\text{repeat} \times \text{Per annum purchase}$.