D373 Section 1: Lesson 3 Customer Concepts

Brand infinity

a brand that is held in high esteem by a prospect or customer

Consideration set

the brands or products left after a person has narrowed down their choices in regard to making a purchase

Internal customer

A person who is employed by the organization and someone who benefits from the output of work from another employee.

Market Segmentation

The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. Standard segmentation includes demographics (age, income), geographics (city, state), psychographics (beliefs, attitudes), and behavior (purchases, product usage)

Ominichannel

A variety of mediums both online and offline in which consumer shopping behaviors, personal interactions, and communications take place

Personas

A semi-fictional representation of an ideal customer based on market segmentation and other detailed insights, usually related to online activity and behavior

Retargeting ads

Ads the show information from websites previously visited or based on online searches performed

Substitutes

Goods and services that can be used for the same purpose. A close but not-exactly-the-same offering

Target audience

A group of prospective customers based on a variety of criteria who are perceived to be likely to make a purchase

Value equation

Customer Value = Customer Benefits - Customer Costs

marketing mix (or 4 P's)

Product, price, place, and promotion—the controllable set of activities that a firm uses to respond to the wants of its target markets.

Average order value

The average value your customer spends with you in a typical visit

Churn

the number of consumers who stop using a product or service

Customer Acquisition Costs

The amount of money a firm spends to convince a customer to buy (or in the case of free products, try or use) a product or service.

customer experience

the sum total of the interactions that a customer has with a company thereby informing their perception and opinion of the brand

Customer retention

the practice of keeping customers by building long-term relationships

Trial

Trying the product or service before purchasing it

Consumer Decision Making Process

1. Recognize problem or opportunity

2. Information search

3. Evaluation of alternatives

4. Purchase decision

5. Purchase

6. Post-purchase evaluation

Business Buying Process

1. Recognize problem or opportunity

2. Conduct information search on products and suppliers

3. Develop needs specification document

4. Request for proposals (RFP) from vendors

5. Vendor selection

6. Performance review