INTRO TO MARKETING BUS 360 CH5-9

Immediate environment

The company’s capabilities, competitors, corporate partners, and physical environment.

Green marketing

A strategic effort by firms to supply customers with environmentally friendly merchandise.

Greenwashing

Exploiting consumers by disingenuously marketing products or services as environmentally friendly, with the goal of gaining public approval and sales.

Macro environmental factors

Aspects of the external environment that affect a company’s business, such as culture, demographics, social trends, technological advances, economic situation, and political/legal environment (CDSTEP)

Generational cohort

A group of people of the same generation—typically have similar purchase behaviors because they have shared experiences and are in the same stage of life.

Internet of Things (IoT)

When multiple “smart devices” with internet-connected sensors, such as refrigerators, dishwashers, and coffeemakers, combine the data they have collected to help both consumers and companies consume more efficiently.

Need recognition

The beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state.

Internet search for information

Occurs when the buyer examines their own memory and knowledge about the product or service, gathered through past experiences.

External search for information

Occurs when the buyer seeks information outside their personal knowledge base to help make the buying decision.

Internal locus of control

Refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities.

Universal set

All possible choices for a product category.

Retrieval set

Those brands or stores that the consumer can readily bring forth from memory.

Evoked set

Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

Choice architecture

Various methods that marketers use to present different choices to consumers which have a pertinent effect on their decision making.

Conversion rate

Measure how well they have converted purchase intentions into purchases.

Post purchase cognitive dissonance

The physiologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers remorse.

Maslow’s hierarchy of needs

A paradigm for classifying people’s motives. It argues that when lower-level, more basic needs are fulfilled people turn to satisfying their higher level human needs.

Attitude

A persons enduring evaluation of their feelings about and behavior tendencies toward an object or idea; consists of three components: cognitive, effective, and behavioral.

Reference group

One or more person whom an individual uses as basis for comparison regarding beliefs, feelings, and behaviors.

Impulse buying

A buying decision made by customers on the spot when they see the merchandise.

Habitual decision marking

A purchase decision process in which consumers engage with little conscious effort.

Request for proposals (RFP)

A process through which buying organizations invite alternative suppliers to bid on supplying their required components.

Web portal

An internet site whose purpose is to be a major starting point for users when they connect to the web.

Buying center

The group of people typically responsible for the buying decisions in large organizations.

Autocratic

One person makes the decisions alone though there may be multiple participants.

Democratic

majority rules in making decisions.

Consultative

One person makes the decision, but he or she solicits input from others before doing so.

Consensus

All members of the team must reach a collective agreement that they can support a particular purchase.

White papers

In a B2B context, white papers are a promotional technique used by B2B sellers to provide information about a produce or service in an educational context, thereby not appearing like a promotion or propaganda.

Globalization

The process by which goods, services, capital, people, information and idea flow across national borders.

Purchase power parity

A theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other expressed in the same currency.

Tariff

A tax levied on a good imported into a country. Also called a duty.

Quota

Designates a maximum of a producer that may be brought into a country during a specified time period.

Undifferentiated

If the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups. Also called mass marketing.

Differentiated

A strategy through which a firm targets several market segments with a different offering for each.

Concentrated

A marketing strategy of selecting a single primary target market and focusing all energies on providing a product to fit that markets needs.

Micro marketing

An extreme form of segmentation that tailors a product or service to suit an individual customer’s wants or needs. Also called one to one marketing.

Perceptual map

Displays in two or more dimensions the position of products or brands in the consumers mind.

Ideal point

The position at which a particular market segment’s ideal product would lie on a perceptual map.