Flashcards
Marketing Lecture 3
Cards in this deck (22)
- 1Buyer Behaviour in Consumer Markets-Often irrational and unpredictable
-Can progress through five stages
-Does not always follow these stages in sequence
-Strong brand loyalty can move consumers directly from need to purchase - 2Buying Decision Process
- 3Psychographic VariableCustomers are divided into groups based on their social groups, lifestyle and personality
- 4Consumer Buying Process- Information SearchThe amount of time, effort and expense dedicated to information search depends on:
-degree of risk involved (financial, social, emotional), the higher means more time spent researching
-amount of expertise with product category - 5Concept of InvolvementHigher of involvement, the likelier that it should be researched. Is it going to be used often?
- 6The Ethical ConsumerEE - vegetarians, fairtrade
AA- ethical attitude, but don't engage in it -> possibly cost constraint
BB - only fairtrade but not free-range
- 7Problem-Solving for Different Products
- 8Consumer Buying Process: Post-purchase Evaluation-The connection between the buying process and developing long-term customer relationships
-Four outcomes, Delight, Satisfaction, Dissatisfaction, Cognitive Dissonance (post-purchase doubt)
-Cognitive Dissonance likely to occur when value of purchase increases, opportunity costs of rejected alternatives are high, purchase decision emotionally involving - 9Factors Affecting the Consumer Buying Process-Decision-Making Complexity: primary reason for variations in the buying process
-Individual Differences: demographics, perceptions, motives, interests, attitudes, opinions, lifestyles
-Social Influences: Culture, social class, reference groups, opinion leaders, etc.
-Situational Influences - 10Individual Level InfluencesMotivation- what drives us, money? self worth? helping people?
Perception- how we select, organise, interpret
Learning- how we process information
Attitudes and beliefs- what we think, tend to change over time - 11Maslow's Hierarchy of Needs
- 12Common Situational Influences-Physical and Spatial: putting likely items together e.g. pasta + pasta sauce
-Social and interpersonal: smell of bread in bakery, people behave different in groups, research shows more pizza eaten in group than alone
-Temporal (time): if pushed for time, decision time shorter, emergencies
-Purchase time or Product Usage Influence
-Consumer Dispositional Influences: certain things bought together - 13Traditional Segmentation: Mass Marketing-Involves no segmentation whatsoever
-Undifferentiated approach
-Works best when need of entire market are homogenous
-Efficient from production standpoint
-Results in lower marketing costs
-Inherently risky and vulnerable to competitiors - 14Traditional Segmentation: Differentiated Marketing-Involves dividing total market into groups of customers having relatively common or homogenous needs and developing a strategy to pursue one or more of these groups
-Multi-Segment Approach: attract buyers in more than one segment by offering a variety of products
-Market Concentration- focus on single market segment attempting to gain maximum share in it - 15Niche MarketsSmall, profitable segment:
-less likely to attract competitors
-sub-segments of larger market
-characterised by willingness to pay price premium
-greater exposure to risk, but can be very profitable - 16Micro-MarketingSatisfying needs of each individual:
-tailor made clothing, cars, bikes
-tailored marketing communication
Personalisation - 17Cluster AnalysisThe task of grouping a set of objects in such a way that objects in the same group (called a cluster) are more similar (in some sense or another) to each other than to those in other groups (clusters).
- 18Multivariate SegementsMultivariate analysis (MVA) is based on the statistical principle of multivariate statistics, which involves observation and analysis of more than one statistical outcome variable at a time.
- 19Targeting Strategies- Undifferentiated Marketing-one marketing mix for the largest 'segment'
-when differences between 'segments' are not very meaningful
-high quantity, EoS, mass advertising and promotion
-lower cost of marketing research and planning
-BUT, not effective if needs are more differentiated - 20Targeting Strategies- Differentiated Marketing-targeting several segments with separate marketing mixes- P&G, Unilever
-more effective if needs to differ substantially
-low EoS, more targeting advertising and promotions
-more costly research and planning - 21Targeting Strategies- Niche-choosing a smaller segment and tailoring a marketing mix and strategy
-more profitable, unidentified segment
-costly in a downturn, all eggs in one basket
-fashions/trends can change - 22Perceptual mapping-shows how (potential) customers view a company's current or potential offerings
-shows how customers view competitors' offerings
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- Flashcards on Marketing Lecture 3, created by mark1232 on 18/10/2015.
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- mark1232
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