Lesson 2: Customer-centric Marketing

These vocabulary flashcards cover the core concepts of customer-centric marketing, consumer behavior factors, the buying decision process, market opportunity analysis tools like SWOT, and the PESTEL macro-environmental framework.

Consumer Behavior

The study of how individuals, groups, and organizations select, purchase, use, and dispose of products, services, ideas, or experiences to satisfy their needs and wants.

Customer-centric Marketing

An approach where businesses place the customer at the center of all marketing decisions, focusing on delivering superior value and satisfaction.

Cultural Factors

Influences on consumer behavior that include culture, subculture, and social class.

Social Factors

Influences on consumer behavior stemming from family, reference groups, and social media influence.

Personal Factors

Individual characteristics influencing buying behavior such as age, occupation, lifestyle, and income.

Psychological Factors

Internal factors that help marketers predict behavior, including motivation, perception, learning, beliefs, and attitudes.

Problem Recognition

The first step of the Consumer Market Buying Process where the consumer realizes a need or want.

Evaluation of Alternatives

The stage in the buying process where a consumer compares different brands or options.

Post-Purchase Behavior

The final stage of the consumer buying process characterized by either satisfaction or dissatisfaction.

Business Market Buying Process

A formal purchasing process involving multiple decision-makers through steps: Need recognition, Specification, Supplier search, Proposal evaluation, Purchase, and Performance review.

Customer Acquisition

Strategies used to attract new customers, such as advertising, social media campaigns, and free trials.

Customer Retention

Strategies used to keep existing customers, such as loyalty programs and personalized offers, which is generally more cost-effective than acquisition.

Market Opportunity Analysis (MOA)

A systematic tool based on data and research used to identify attractive markets, customer needs, and competitive advantages.

SWOT Analysis

A strategic tool used to analyze internal Strengths and Weaknesses, and external Opportunities and Threats.

Strengths

Internal advantages within a company's control, such as a strong brand or a skilled workforce.

Weaknesses

Internal limitations within a company, such as limited distribution or low brand awareness among specific demographics like the $18$ to $24$ age group.

Opportunities

External favorable trends or factors the company identifies to grow, such as a growing demand for delivery services.

Threats

External challenges coming from outside factors, such as inflation, high competition, or new government regulations.

PESTEL Analysis

A framework used to monitor macro-environmental external factors: Political, Economic, Social, Technological, Environmental, and Legal.

Political Factors

External government actions that influence business, including taxes, tariffs, trade rules, and political stability.

Economic Factors

External money conditions in society, such as inflation, interest rates, exchange rates, and fuel prices.

Social Factors (PESTEL)

Macro-environmental factors referring to human behavior, culture, demographics, and lifestyle changes like health consciousness.

Technological Factors

External innovations affecting competition and operations, including AI tools, digital payments like GCash, and automation.

Environmental Factors

Ecological issues and nature-related factors such as climate change, natural disasters, and plastic bans.

Legal Factors

Laws that businesses must follow, covering consumer protection, labor laws, data privacy, and business licensing.