Marketing Fundamentals: Marketing Mix, Environment, and Customer Behaviour

Vocabulary flashcards covering marketing fundamentals, the 4 Ps, relationship marketing, environmental scanning forces, and the customer purchase decision process.

Product

The attributes that make up a good, a service, or an idea.

Price

What is exchanged for a product, including expected retail or sale price.

Place

The distribution channels, retail formats, and merchandise used to sell a product.

Promotion

Communication tools needed to inform consumers about a product, including advertising, public relations, direct response, and personal selling.

Marketing Process

A three-stage process involving: 1) Identifying consumer needs, 2) Managing the marketing mix to meet these needs, and 3) Reaching potential consumers or the market.

Market

A group of potential consumers who have both the willingness and ability to buy a product.

Three Elements of Relationship Marketing

1) Social media, 2) Customer Relationship Management, and 3) Corporate Social Responsibility.

Marketing Environment

The external environment comprised of five key forces: Social, Economic, Technological, Competitive, and Regulatory.

Environmental Scan

The process of continually acquiring info on events occurring outside an organization to identify external trends that are opportunities or threats to a business.

Social Environment

An element of an environmental scan that refers to the demographic characteristics of the population.

Economic Environment

An element of an environmental scan assessing the state of the economy and consumer ability to spend.

Technological Environment

An element of an environmental scan focusing on scientific inventions and their impact on business.

Competitive Environment

An element of an environmental scan analyzing direct and indirect competitors in the market.

Regulatory Environment

An element of an environmental scan consisting of restrictions placed on business by government or industry associations.

Problem Recognition

The first step in the purchase decision process, occurring when a person realizes the difference between what they have and what they would like to have.

Internal Search

Scanning memory for knowledge of or past experience during information search.

External Search

Information search conducted when a consumer lacks experience or knowledge, or when the problem is more complex.

Evaluation of Alternatives

A stage in the purchase decision process that helps clarify options and suggest evaluation criteria for the customer.

Purchase Decision

A set of three choices made by the consumer: what brand to buy, who to buy from, and when to buy.

Post-Purchase Behavior

The post-purchase stage where satisfied buyers tell 3 people, while dissatisfied buyers complain to 9 people.

Cognitive Dissonance

Post-purchase psychological tension or anxiety.

Involvement

How important or risky the purchase feels to you, classified as low involvement (cheap and easy) or high involvement (expensive and matters).

Routine Problem Solving

A purchase decision process where you buy the same thing you always buy automatically with no thinking needed.

Limited Problem Solving

A purchase decision process where you look at a few options with a little thinking before picking one.

Extended Problem Solving

A purchase decision process where you search a lot, compare many brands, and take extra time and thinking.