MKTG 2201 Exam 2

consumer buyer behavior

the buyer behavior of final consumers- individuals and households that buy goods and services for personal consumption

consumer market

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

culture

the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions

subculture

a group of people with shared value systems based on common life experiences and situations

total marketing strategy

integrating ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultural segments rather than differences

social classes

relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors

reference groups

a group that serves as direct or indirect point of comparison or reference in forming a person's attitudes or behavior

opinion leaders

a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others

word-of-mouth influence

the impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behavior

influencer marketing

enlisting established influencers or creating new influencers to spread the word about a company's brands

online social networks

online social communities - blogs, social networking Web sites, and other online communities - where people socialize or exchange information and opinions

lifestyle

a person's pattern of living as expressed in his or her activities, interests, and opinions

personality

the unique psychological characteristics that distinguish a person or group

motive (drive)

a need that is sufficiently press to direct the person to seek satisfaction of the need

perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world

learning

changes in an individual's behavior arising from experience

belief

an enduring piece of knowledge about an object or event

attitude

a person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea

cognitive dissonance

buyer discomfort caused by post purchase conflict

new product

a good, service, or idea that is perceived by some potential customers as new

adoption process

the mental process through which an individual passes from first hearing about an innovation to final adoption

business buyer behavior

the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

business buying process

the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands

derived demand

business demand that ultimately comes from (derives from) the demand for consumer goods

supplier development

systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others

straight rebuy

a business buying situation in which the buyer routinely reorders something without any modifications

modified rebuy

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

new task

a business buying situation in which the buyer purchases a product or service for the first time

systems selling (or solutions selling)

buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

buying center

all the individuals and units that play a role in the purchase decision-making process

e-procurement

purchasing through electronic connections between buyers and sellers - usually online

market segmentation

dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

market targeting

evaluating each market segment's attractiveness and selecting one or more segments to enter

differentiation

actually differentiating the market offering to create superior customer value

positioning

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

geographic segmentation

dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

demographic segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

age and life-cycle segmentation

dividing a market into different age and life-cycle groups

gender segmentation

dividing a market into different segments based on gender

income segmentation

dividing a market into different income segments

psychographic segmentation

dividing a market into different segments based on lifestyle or personality characteristics

behavioral segmentation

dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

occasion segmentation

dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item

benefit segmentation

dividing the market into segments according to the different benefits that consumers seek from the product

intermarket (cross-market) segmentation

forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries

undifferentiated marketing

a market-coverage strategy in which a firm targets several market segments and designs separate offers for each

concentrated marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

micromarketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

local marketing

tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores

product position

the way a product is defined by consumers on important attributes- the place the product occupies in consumers' minds relative to competing products

competitive advantage

an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices

value proposition

the full positioning of a brand - the full mix of benefits on which it is positioned

positioning statement

a statement that summarizes company or brand positioning using this form: to (target segment and need) our (brand) is (concept) that (point of difference)

product

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

services

an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

consumer prodcuts

a product bought by final consumers for personal consumption

convenience products

a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort

shopping products

a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and style

specialty products

a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

unsought products

a consumer product that the consumer either does not know about or knows about but does not normally consider buying

industrial products

a product bought by individuals and organizations for further processing or for use in conducting a business

social marketing

the use of traditional business marketing concepts and tools to encourage behaviors that will create individual and societal well-being

product quality

the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

brand

a name, term, symbol, design, or combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors

packaging

the activities of designing and producing the container or wrapper for a product

product line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

product mix

the set of all product lines and items that a particular seller offers for sale

service intangibility

services cannot be seen, tasted, felt, heard, or smelled before they are bought

service inseparability

services are produced and consumed at the same time and cannot be separated from their providers

service variability

the quality of services may vary greatly depending on who provides them and when, where, and how they are provided

service perishability

services cannot be stored for later sale or use

service profit chain

the chain that links service firm profits with employee and customer satisfaction

internal marketing

orienting and motivating customer-contact employees and supporting service employees to work as a team to provide customer satisfaction

interactive marketing

training service employees in the fine art of interacting with customers to satisfy their needs

brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

brand value

the total financial value of a brand

store brands (private label)

a brand created and owned by a reseller of a product or service

co-branding

the practice of using the established brand names of two different companies on the same product

line extension

extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category

brand extension

extending an existing brand name to new product categories

new product development

the development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts

idea generation

the systematic search for new product ideas

crowdsourcing

inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process

idea screening

screening new product ideas to spot good ones and drop poor ones as soon as possible

product concept

a detailed version of the new product idea stated in meaningful consumer terms

concept testing

testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal

marketing strategy development

designing an initial marketing strategy for a new product based on the product concept

business analysis

a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives

product development

company growth by offering modified or new products to current market segments

test marketing

the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings

commercialization

introducing a new product into the market

customer-centered new product development

new product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences

team-based new product development

new product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness

product life cycle (plc)

the course of a product's sales and profits over its lifetime

style

a basic and distinctive mode of expression.

fashion

a currently accepted or popular style in a given field

fads

a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

introduction stage

the PLC stage in which a new product is first distributed and made available for purchase

growth stage

the PLC stage in which a product's sales start climbing quickly

maturity stage

the PLC stage in which a product's sales growth slows or levels off