MKT 300 unit 2

Consumer Buying Decision Process

Problem Recognition, Information Search, Evaluation of Alternatives, Purchase, Post-Purchase Evaluation

Level of Involvement

An individual's degree of interest in a product and the importance of the product for that person

Consumer Problem Solving Strategies

Routinized Response (frequent, low-cost), Limited Problem Solving (Occasionally buying brands or unfamiliar brand in familiar category), Extended Problem Solving (Unfamiliar, expensive, or infrequently bought), Impulse Buying (NO decision making)

Categories of Situational Influences

Physical, Social, Time, Purchase Reason, Buyer's momentary mood/condition

Six Categories of Psychological Influences on Consumer Behavior

Perception, Motives, Learning, Attitudes, Personality and Self-Concept, Lifestyles

Perception Process

Selective Exposure (choosing inputs), Distortion (Information inconsistent with personal feelings), Retention (remembering "correct" and forgetting "incorrect")

Maslow's Hierarchy of Needs

Physiological -> Safety -> Social -> Esteem -> Self-Actualization

Components of Attitude

Cognitive, Affective, Behavioral

Fishtein model of attitudes

Understanding the attitude towards the object

VALS framework

Framework that links personality with consumers' lifestyles, eight types of people

Social Influences

Roles, Family Influences, Reference Group, Opinion Leader, Social Class, Cultures, Subcultures

Business Markets

Producer, Reseller, Government, Institutional Markets

North American Industrial Classification System (NAICS)

Used by US, Canada, and Mexico for market segmentation

Reciprocity

An arrangement in which two organizations agree to buy from each other

Primary Concerns of Business Customers

Price, Product Quality, Services, Supplier Relationships

Methods of Business Buying

Description, Inspection, Sampling, Negotiation

Types of Business Purchases

New Task, Straight Rebuy, Modified Rebuy

Stages of the Business Buying Decision Process

Recognize problem, develop product specifications, evaluate possible products/suppliers, select and order, evaluate performance

Influences of the Business Buying Decision Process

Environmental, Organizational, Interpersonal, Individual

Characteristics of Online Media

Addressability, Interactivity, Accessibility, Connectivity, Control

Types of Digital Media

Consumer-Generated Marketing, Social Networks, Blogs and Wikis, Media Sharing Sites, Virtual Sites, Mobile Marketing, Applications and Widgets

Considerations needed for E-Marketing

Product, Distribution, Promotion, Price

Types of Consumer Products

Convenience, Shopping, Specialty, Unsought

Types of Business Products

Installations, Acessory, Raw Materials, Components, Process Materials, MRO Supplies, Business Services

Product Item

A specific version of a product, distinct from other offerings in an organization's line

Product Line

A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations

Product Mix

The total group of products that an organization sells to customers

Width vs Depth

Number of products vs average number in each line

Stages of the Product Life Cycle

Introduction, Growth, Maturity, Decline

Product Adoption Process

Awareness, Interest, Evaluation, Trial, Adoption

Different Categories of Product Adopter

Innovators, Early Adopters, Early Majority, Late Majority, Laggards

Brand Mark vs Trademark

The intangible part of a brand like symbols and designs vs the legal designation of exclusive use of a brand

Degrees of Brand Loyalty

Brand Recognition, Brand Preference, Brand Insistence

Types of Brands

Manufacturers, Private Distributors, Generics

Branding Strategies

Individual, Family, Brand Extensions

Co-Branding

Using two or more brands on one product

Functions of Packaging

Protect the product and maintain its functional form, Provide customer convenience, Promotes the product's features and uses, Communicates quality through symbols

Major Packaging Considerations

Cost, Regulations, Consistency, Promotion, Meet reseller needs, Be environmentally responsible

How to use Packaging Strategically

Altering the package, secondary-use packaging, unique features, innovative packaging, multiple packaging, handling-improved packaging

Reasons for a Line Extension

Focus on a different segment, more precisely satisfy needs of current segment, capture market share from competitors

Major ways to modify products

Quality, functional, or aesthetic

Phases of the New Product Development Process

Idea generation, Screening, Concept testing, Business analysis, Product department, Test marketing, Commercialization

Key Aspects of Product Differentiation

Product Quality, Product Design and Features, Product Support Services