[FDNMARK] Chapter 4 & 5: SWOT Analysis and Consumer Behavior

SWOT Analysis

a framework used to evaluate a company's competitive position and to develop strategic planning

SWOT Analysis

designed to facilitate a realistic, fact-based, data driven look at the strengths and weaknesses of an organization, its initiatives, or an industry

Strengths

resources and capabilities that can be used as a basis for developing a competitive advantage

Competitive advantage

strategic advantage that one business entity has over its rival entities within its competitive industry

Weaknesses

prevent a company from accomplishing its mission and achieving its full potential

Weaknesses

deteriorate influences on organizational success and growth

Weaknesses

factors that do not meet the standards the company feels they should meet

Threat

a specific event that will cause an increase in the level of competition

Opportunity

a specific event that will cause a decrease in the level of competition

Benchmarking

process of comparing the business processes and performance metrics including cost, cycle time, productivity, or quality to another that is widely considered to be an industry standard or best practice

TOWS Matrix

is a strategic analysis tool which can help you generate, compare, and then select one or more strategies to pursue.

Consumer Behavior

buying behavior of final consumers, individuals, and households who buy goods and services for personal consumption

Consumer Market

all the individuals and households who buy or acquire goods and services for personal consumption

Consumers

vary tremendously in age, income, education level, and tastes

Consumers

buy an incredible variety of goods and services

Market Research

• What consumers buy

• Who buys

• How they buy

• When they buy

• Where do they buy

• Why they buy

Environmental Stimuli

inputs to the consumption process include marketing stimuli (Four Ps) as well as forces in the buyer’s environment: economic, technological, political, and cultural

Consumer Black Box

the marketer wants to understand how the stimuli from the environment are changed into responses

Consumer Black Box

buyer characteristics influence how the buyer perceives and reacts to the stimuli; the decision process itself affects the buyer’s behavior

Consumer Black Box

a metaphor that signifies that we cannot see what people are thinking

Consumer Black Box

components can only be learned through observable buyer responses

Consumer Responses

include purchasing and loyalty to the brand or outlet

Initiator
Influencer
Decider
Gatekeeper
Buyer
User

6 Roles in the Buying Process

Initiator

person who first suggests of thinks of the idea of buying a particular product or service

Influencer

person whose view or advice carry some weight in making the final decision

Decider

person who ultimately makes a buying decision or any part of it—whether to buy, what to buy, how to buy, or where to buy

Gatekeeper

person who controls access to the necessary data as a part of buying

Buyer

person who makes the actual purchase

User

person who consumes the product

Need Recognition
Search
Information Sources
Choice
Purchase
Post-Purchase

5 Stages of Decision Process

Need Recognition

results from a perceived difference between a consumer’s current state and the desired state

Search

occurs if the consumer does not have adequate information to make a purchase

Search

amount is commensurate with the level of involvement in the purchase.

Information Sources

where consumers may acquire information

Choice

uses information acquired previously

Choice

time and effort made is a function of involvement level

Purchase

the consumer will purchase the most preferred brand

Purchase

situational factors (e.g., time pressures, shopping companions, out of stock conditions, or store layout) may come between the intention and the final outcome

Post-Purchase

where consumers compare product performance against their expectations

Post-Purchase

if expectations are met or exceeded, the buyer feels satisfied