Marketing 3300 Chapter 5, 6, 9, & 11

What are the components of the immediate environment?
Company capabilities, competitors, corporate partners, with the consumer in the middle.
What are the six key macro-environment factors?
1. culture, 2. demographics, 3. social issues, 4. technological advances, 5. economic situation, 6. political/regulatory environment. The above is referred to as CDSTEP.
Culture has two parts.
Country Culture, and Regional Culture.
Country culture
Entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, color, and food preferences.
Regional culture
The influences of the area within a country in which people live.
Demographics
Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education.
Differentiate between country culture and regional culture.
Country culture entails easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, color, and food preferences.
Differentiate between country culture and regional culture.
Regional culture is the influences of the area within a country in which people live.
Identify the deferent generational cohorts.
Gen Z between 2001 – 2014, Gen Y between 1977 – 2000, Gen X between 1965 – 1976, Baby boomers between 1946 -1964.
Generation Z
Generation Z also know as the Digital Natives, because people in this group were born into a world that already was full of electronic gadgets and digital technologies, such as the internet and social network.
Generation Y
Gen Y are generational cohorts of people born between 1977 and 1995; biggest cohort since the original postwar baby boom.
Generation X
Gen X are Generational cohorts born between 1965 and 1976.
Baby Boomers
Generational cohorts of the people born after WW II, between 1946 and 1964.
What are some important social trends shaping consumers values and shopping behaviors?
Various social trends appear to be shaping consumer values in the United States and around the world, including a greater emphasis on thrift, health and wellness concerns, greener consumers, privacy concerns, and time-poor societies.
Names the five stages in the consumer decision process.
1. Need recognition, 2. Information search, 3. Alternative evaluation, 4. Purchase, 5. Post purchase.
Need recognition
The beginning of the consumer decision process; occurs when consumers recognize they have and want to go from their actual, needy state to a different desired state.
What is difference between a need and want?
Need is the difference between your actual [hungry] state and your desired [not hungry] state – is greater, and you’ll want to eat immediately to get to your desired state.
Distinguish between functional and psychological needs.
Functional needs, pertains to the performance of a product or service. Psychological needs, pertain to the personal gratification consumers associate with a product or service.
What are the various types of perceived risk?
Their are five types of risk associated with a purchase decision. 1. Performance, 2. financial, 3. social, 4. physiological, 5. psychological.
Performance risk
Involves the perceived danger inherent in a poorly performing product or service.
Financial risk
Risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service.
Social risk
The fears that consumers suffer when they worry others might not regard their purchases positively.
Physiological risk
The fear of an actual harm should a product not perform properly.
Psychological risk
Associated with the way people will feel if the product or service doesn’t convey the right image.
What are the differences between compensatory and non-compensatory decision rules?
Compensatory decision rule at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones.
A compensatory decision rule
A compensatory rule assumes that the consumer, when evaluating alternatives, trade off one characteristic against another, such that good characteristics compensate for bad characteristics.
A non-compensatory decision rule
It is when a consumer choose a product or service on the basis of one characteristic or one subset of a characteristic, regardless of the value of its other attributes.
What are some examples of specific needs suggested by Maslow’s Hierarchy of Needs?
1. Physiological, 2. Safety, 3. Love, 4. Esteem, 5. Self-actulaization.
Physiological needs
Those relating to the basic biological necessities of life: food, drink, rest, and shelter.
Safety needs
One of the needs in the PSSP hierarchy of needs; pertain to protection and physical well-being.
Love needs
Needs expressed through interactions with others.
Esteem needs
Needs that enable people to fulfill inner desires.
Self-actualizaion
When a person is completely satisfied with his or her life.
Which social factors likely have the most influence on [a] the purchase of a new outfit for a job interview and [b] the choice of a college to attend?
A.) Reference groups and culture B.) Family
How do low-versus high-involvement consumers process the information in an advertisement?
Low-involvment, less attention, peripheral processing, which generates weak attitudes and increased use of cues. High-involvment, greater attention, deeper processing, which develops strong attitudes and purchase intentions.
What is the difference between extended versus limited problem solving?
Extended versus limited problem solving, lets look at the two.
Limited problem solving
Occurs during a purchase decision that call for, at most, a moderate amount of effort and time.
Extended problem solving
A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occur when the consumer perceives that the purchase decision entails a lot of risk.
What are the various segmentation methods?
1. Geographic, 2. Demographic, 3. Psychographic, 4. Benefits, 5. Behavioral.
Geographic
Example: Continent: North America, Asia, Europe, Africa
Within U.S.: Pacific, mountain, central, south, mid-Atlantic, northeast.
Demographic
Example: Age, Gender, income., Characteristics such as age, sex, income, location, education, and religion
Psychographic
Data that describes a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits.
Benefits
Example: Convenience, economy, prestige.
Behavioral
Example: Occasion, loyalty.
What is a perceptual map?
A technique used to visually describe where products/brands are “located” in consumers’ minds relative to competing brands.
Identify the six positioning steps?
1. Determine consumers’ perceptions and evaluations of the product or service in realign to competitors.
Identify the six positioning steps; step 2.
2. Identify the market’s ideal points and size.
Identify the six positioning steps; step 3.
3. Identify competitors’ positions.
Identify the six positioning steps; step 4.
4. Determine consumers preference.
Identify the six positioning steps; step 5.
5. Select the position.
Identify the six positioning steps; step 6.
6. Monitor the positioning strategy.
Explain the three components of a product.
1. Core consumer value, 2. Associated services, 3. Actual services.
Core customer value.
Core customer value is the basic problem solving benefits that consumers are seeking.
Associated services
Associated services also called augmented products, the non-physical attributes of the product including product warranties, financing, product support, and after-sale service.
Actual product
Actual product is the physical attributes of a product including the brand name, feature/design, quality level, and packaging.
What are the four types of consumer products?
1. Specialty Products/Services, 2. Shopping Products/Services, 3. Convenience Products/Services, 4. Unsought Products/Services.
Specialty products / services
Products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best supplier.
Shopping products / services
Those for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances.
Convenience products / service
Those for which the consumer is not willing to spend and effort to evaluate prior to purchase.
Unsought products / services
Products or services consumers either do not normally think of buying or do not know about.
How do brands create value for customer and the firm?
Brands facilitate the consumer search process are valuable in a legal sense, can lead to lower marketing costs because the brand and its associations help sell the product and brands have real market value as a company asset.
What are the components of brand equity?
1. Brand Awareness, 2. Perceived Value, 3. Brand Association, 4. Brand loyalty.
Brand awareness
The extent to which a brand name comes to mind when a consumer considers a particular product category. Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated brand exposures of the various brand elements. Example: brand name, logo, symbol, character, packaging, or slogan, in the firm’s communications to consumers.
Perceived value
The relationship between a product’s or service’s benefits and its cost.
Brand association
The mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personality.
Brand loyalty
A favorable attitude toward and consistent purchase of a single brand over time.
What are the differences between manufacturer and private-label brands?
Manufacturer brands also known as national brands are brands owned by the manufacture. Private-label brands are brands developed and marketed by a retailer and available option from the retailer; also called store brands.
What are co-branding?
The practice of marketing two or more brands together, on the same package or promotion.
What is brand repositioning?
rebranding — marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences