In the __________ stage, the consumer considers whether trying the new product makes sense.

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In which stage of the adoption process does the consumer considers whether trying the new product makes sense?
Is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set?
Is when the consumer becomes aware of the new product but lacks information about it?
What happens in the evaluation stage of the adoption process quizlet?

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CHAPTER 5	UNDERSTANDING CONSUMER AND BUSINESS BUYER BEHAVIOR
CHAPTER 5	UNDERSTANDING CONSUMER AND BUSINESS BUYER BEHAVIOR
refers to the buying behavior of final consumers-- individuals and households that buy goods and services for personal consumption:	consumer buyer behavior
refers to the buying behavior of final consumers-- individuals and households that buy goods and services for personal consumption:	consumer buyer behavior
all of the final consumers combine to make up the:	consumer market
how many people are in the american consumer market?	320 million people
how much does the american consumer market consume ($-wise) on goods and services each year?	$11 trillion-- making it most attractive consumer market in the world
understanding the ________ of buying behavior is very difficult	whys
central questions for marketers:	how do consumers respond to various marketing efforts the company might use?
review figure 5.1	Environment--> Buyer's Black Box --> Buyer Responses
what does the buyer's black box contain?	1. buyer's characteristics (how he or she perceives and reacts to the stimuli) and 2. buyer's decision process (also affects his or her behavior)
Marketing stimuli consist of what?	the 4 P's: product, place, price, promotion
what are the other events in the buyer's environment that may affect their buying decision?	economic, technological, social, and cultural
factors influencing consumer purchases:	cultural, social, personal, and psychological characteristics
see figure 5.2
cultural factors consist of what (3) things:	1. culture 2. subculture 3. social class
the most basic cause of a person's wants and behavior:	culture
human behavior is largely what?	learned
groups of people with shared value systems based on common life experiences and situations:	subcultures
Hispanics:	more than 55 million consumer; buying power of $1.7 trillion (ram trucks)
most affluent U.S. demographic segment:	Asian Americans
Asian Americans:	more than 18 million, buying power of $1 trillion
fastest growing subsegment? second fastest growing subsegment?	Hispanic Americans- fastest; Asian Americans- second fastest
Asian Americans:	speak many DIFFERENT languages
most brand conscious of all ethnic groups? also fiercely brand-loyal...	Asian Americans
the practice of integrating ethnic themes and cross-cultural perspectives within their mainstream marketing:	total market strategy
example of a total market strategy:	general-market commercials for Cheerios and Swiffer that feature interracial families
a total market strategy appeals to what?	consumer similarities across subcultural segments rather than differences
society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors:	social class
7 social classes:	upper upper class, lower upper class, upper middle class, middle class, working class, upper lower class, and lower lower class
in the US, lines between social classes are not fixed and rigid...	people can move to a higher social class or drop into a lower one
consumer's behavior is also influenced by ___________ factors:	social
many small __________ influence a person's behavior:	groups
groups that have a direct influence and to which a person belongs are called:	membership groups
groups that serve as direct (face-to-face interactions) or indirect points of comparison or reference in forming a person's attitudes or behavior:	reference groups
group to which the individual wishes to belong, as when a young basketball player hopes to someday emulate basketball star LeBron James and play in the NBA:	aspirational groups
when does group influence tend to be strongest?	when the produce is visible to others whom the buyer respects
the personal words and recommendations of trusted friends, family, associates, and other consumers tend to be more credible than those coming from commercial sources such as advertisement, or salespeople:	word-of-mouth influence
_____% of consumers trust recommendations from friends and family above any form of advertising	92%
people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others:	opinion leadlers
opinion leaders can also be called...	influentials or leading adopters
involves enlisting or even creating opinion leaders to serve as "brand ambassadors" who spread the words about a company's products:	buzz marketing
online communities where people socialize or exchange information and opinions:	online social networks
the most important consumer buying organization in society, and it has been researched extensively:	the family
"Dads who get it, get _______________)	Go-Gurt (targeting the opposite sex now_
kids and tween influence up to ______% of all household purchases, to the tune of $1.2 trillion of spending annually	80%
consists of the activities people are expected to perform according to the people around them:	a role
a buyer's decision are also influenced by personal characteristics such as:	occupation, age and life-cycle stage, economic situation, lifestyle, and personality and self-concept
who buys more rugged work clothes?	blue-collar workers
a person's pattern of living as expressed in his or her psychographics:	lifestyle
lifestyle involves measuring consumers' major AIO dimensions, what does AIO stand for?	activities (work, hobbies, shopping, sports, social events) interests (food, fashion, family, recreation) opinions (about themselves, social issues, business, products)
the unique psychological characteristics that distinguish a person or group:	personality
the specific mix of human traits that may be attributed to a particular brand:	brand personality
5 brand personality traits:	1. sincerity 2. excitement 3. competence 4. sophistication 5. ruggedness
reflection of one's own identity:	self- concept (or self-image)
four major psychological factors that affect a person's buying choice:	motivation, perception, learning, beliefs, and attitudes
when does a need become a motive?	when it is aroused to a sufficient level of intensity
a need that is sufficiently pressing to direct the person to seek satisfaction:	motive (or drive)
who have the most popular theories of human motivation?	Sigmund Freud and Abraham Maslow
Sigmund Freud:	theory suggests that a person's buying decisions are affected by subconscious motives that even the buyer may not fully understand (BMW and baby boomer)
proves the subconscious motivations underlying consumers' emotions and behaviors toward brands:	motivation research
Abraham Maslow:	sought to explain why people are driven by particular needs at particular times/ answer: that human needs are arranged in a hierarchy (Figure 5.3) from the most pressing at the bottom to the least pressing at the top
Maslow's Hierarchy of Needs: (know the bottom is MOST pressing, whereas the top is LEAST pressing)	starting from bottom: PHYSIOLOGICAL needs (hunger and thirst); SAFETY needs (security and protection); SOCIAL needs (love and belonging); ESTEEM needs (self-esteem, status, recognition); and SELF-ACTUALIZATION needs (self-development and realization)top
tries to satisfy the _________ ________________ need first, and once it is satisfied it is no longer a ______________	most important, motivator
the process by which people select, organize, and interpret information to form a meaningful picture of the world:	perception
people can form different perceptions of the same stimulus because of three perceptual processes:	1. selective attention 2. selective distortion 3. selective retention
the tendency for people to screen out most of the information to which they are exposed-- meaning marketers must work especially hard to attract the customer's attention:	selective attention
describes the tendency of people to interpret information in a way that ill support what they already believe:	selective distortion
means consumers are likely to remember good points made about a brand they favor and forget good points made about competing brands:	selective retention
marketing messages without even knowing they affect the consumer: (popcorn and drink in movie theatre example)	subliminal advertising` (little or no link between subliminal messages and consumer behavior though)
describes changes in an individual's behavior arising from experience:	learning
a strong internal stimulus that calls for action:	drive
drive becomes a motive when it is directed toward a particular ________________ ______________	stimulus object
minor stimuli that determine when, where, and how the person responds:	cues
a descriptive thought that a person holds about something:	belief
beliefs may or may not carry an ______________ charge	emotional
describes a person's relatively consistent evaluations, feelings, and tendancies toward an object or idea:	attitude
what are difficult to change?	attitudes
easier to make product fit into existing ___________ patterns rather than attempt to change them	attitude
Buyer decision process consists of 5 stages:	1. need recognition 2. information search 3. evaluation of alternatives 4. the purchase decision and 5. post-purchase behavior
See figure 5.4
markets should focus on the entire buying process, not just the purchase decision. T/F?	True
the buyer recognizes a problem or need:	need recognition
when one of the person's normal needs-- for example, hunger or thirst-- rises to a level high enough to become a drive:	internal stimuli
a need can also be triggered by an _________________ _____________, for example an advertisement or a discussion with a friend might get you thinking about buying a new car:	external stimuli
different types of sources to obtain information:	personal sources (family, friends, neighbors, acquaintances); commercial sources (advertising, salespeople, manufacturer, packaging, displays) public sources (mass media, consumer rating organizations); experiential sources (examining/ using product)
most effective sources tend to be what?	personal
consumers have received the most information about a product from what kind of sources (hint: the one controlled by the marketer)	commercial sources
commercial sources normally _________ the buyer:	inform
personal sources _____________ or ___________ products from the buyer:	legitimize, evaluate
how consumers process information to choose among alternative brands:	alternative evaluation
what two factors can come between the purchase INTENTION and purchase DECISION?	1. attitudes of others 2. unexpected situational factors
what determines if a buyer is satisfied or dissatisfied with a purchase?	the answer lies in a relationship between the consumer's expectations and the product's perceived performance
falls short? meets expectations? exceeds expectations?	disappointed; satisfied; delighted
discomfort caused by post-purchase conflict:	cognitive dissonance
consumers feel at least some post-purchase dissonance for every purchase. T/F?	True.
Why is it so important to satisfy the customer?	customer satisfaction is a key to building profitable relationships with consumers-- to keeping and growing consumers and reaping their customer lifetime value
a good, service, or idea that is perceived by some potential customers as new:	new product
the mental process through which an individual passes from first learning about an innovation to final adoption:	adoption process
the decision by an individual to become a regular user of the product:	adoption
5 stages of adopting a new product:	1. awareness 2. interest 3. evaluation 4. trial 5. adoption
the consumer becomes aware of the new product but lacks information about it: (stage of adoption process)	awareness
the consumer seeks information about the new product: (stage of adoption process)	interest
the consumer considers whether trying the new product makes sense: (stage of adoption process)	evaluation
the consumer tries the new product on a small scale to improve his or her estimate of its value: (stage of adoption process)	trial
the consumer decides to make full and regular use of the new product: (stage of adoption process)	adoption
to help tentative consumers over the buying decision hump, what can sellers do?	offer sales at retail, rebates, and other buying incentives
as the curve for adopter categories shows, after a _______ start, an increasing number of people adopt the new product	slow
eventually, the product reaches its __________________ _________________ level	cumulative saturation
innovators are defined as the first _____ % of buyers to adopt a new idea	2.5
the early adopters of a product are the next _____% after the first 2.5%	13.5
after the innovators and early adopters, then come who?	early mainstream, late mainstream, and lagging adopters
see figure 5.5 for adopter categories based on relative time of adoption of innovations
percents: innovators are ______% and early adopters are the next _____%	2.5; 13.5
the five adopter groups have differing values: _____________ are venturesome-- they try new ideas at some risk:	innovators
_______________ ________________ are guided by respect- they are opinion leaders in their communities and adopt new ideas early but carefully:	early adopters
_____________ _______________ adopters are deliberate-- although they rarely are leaders, they adopt new ideas before the average person:	early mainstream
____________ ________________ adopters are skeptical-- they adopt an innovation only after a majority of people have tried it:	late mainstream
_____________ _____________ are tradition bound-- they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself:	lagging adopter
the adopter classification suggests that an innovating firm should research the characteristics of who in their product categories and direct initial marketing efforts toward them:	innovators and early adopters
the characteristics of a new product affect its what?	rate of adoption
what 5 characteristics are especially important in influencing an innovation's rate of adoption?	1. relative advantage 2. compatibility 3. complexity 4. divisibility 5. communicability
the degree to which the innovation appears superior to existing products:	relative advantage
the degree to which the innovation fits the values and experiences of potential consumers:	compatibility
the degree to which the innovation is difficult to understand or use:	complexity
the degree to which the innovation may be tried on a limited basis:	divisibility
the degree to which the results of using the innovation can be observed or described by others:	communicability
other characteristics that influence the rate of adoption:	initial and ongoing costs, risk and uncertainty, and social approval
NOW INTO BUSINESS MARKETS AND BUSINESS BUYER BAHVIOR
refers to 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 buyer behavior
business buying behavior also includes the behavior of retailing and wholesaling firms that acquire goods to resell or rent to others at what?	a profit
business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands:	business buying process
who must do their best to understand business markets and business buyer behavior?	Business-to-business (B-to-B) marketers
Business-to-business marketers must then engage business customers and build profitable relationships with them by creating what?	superior customer value
business markets operate what to most consumers?	"Behind the scenes"
what do many of the things you buy involve before you ever see them?	many sets of business purchases
many sets of _____________ purchases can (and probably will) be made before the consumer purchases	business
what is the main difference in business and consumer markets?	the main difference is in market structure and demand, the nature of the buying unit, and the types of decisions and the decision process involved
the business marketer normally deals with what compared to the consumer market?	far fewer but far larger buyers
many business markets have ____________ and more _____________ demand	inelastic, fluctuating
the total demand for many business products is not much affected by _______ changes, especially in the short run	price
the demand for many business goods and services tends to change more-- and more quickly-- than does the demand for consumer goods and services. T/F?	true
a small percentage increase in consumer demand can cause large increases in business demand. T/F?	true
business demand ultimately derives from the demand for consumer goods:	derived demand
compared to consumer purchases, a business purchase usually involves what?	more decision participants and a more professional purchasing effort
now, B-to-B marketers now face a new breed of higher-level, better-trained supply managers so companies must do what	must have well-trained marketers and salespeople to deal with these well-trained buyers
business buyers usually face more ___________ buying decisions that do consumer buyers:	complex
the business buying process tends to be __________ (time interval) and more ____________:	longer, formalized
in the business buying process, the buyer and seller are often much more ________________ on each other	dependent
systematically developing networks of supplier-partners to ensure a dependable supply of the products and materials that they use in making their own products or reselling to others:	supplier development
to design good marketing strategies, marketers must understand what happens within the organization to turn ___________ into purchase responses	stimuli
within the organization, buying activity consists of two major parts:	1. the buying center 2. the buying decision process
composed of all the people involved in the buying decision:	the buying center
see figure 5.6
4 major questions about business buyer behavior:	1. what buying decisions do business buyers make? 2. who participates in the business buying process? 3. what are the major influences on buyers? 4. how do business buyers make their buying decisions?
there are 3 major types of buying situations:	1. straight rebuy 2. new task 3. systems selling
when the buyer reorders something without any modifications:	straight rebuy
when the buyer wants to modify product specifications, prices, terms, or suppliers:	modified rebuy
a company buying a product or service for the first time faces this kind of situation:	new task
what is the marketer's greatest opportunity and challenge?	the new task situation
the buyer makes the fewest decisions in the what? the most decisions in the what?	straight rebuy; new task
many business buyers prefer to buy a complete solution to a problem from what rather than what?	from a single seller rather than buying separate products and services from several suppliers and putting them together
often a key business marketing strategy for winning and holding accounts:	systems selling (or solutions selling)
the decision-making unit of a buying organization (consists of all the individuals and units that play a role int eh business purchase decision-making process):	buying center
the buying center is NOT a fixed and formally identified unit within the buying organization. T/F?	True
the buying center is a set of buying roles assumed by different people for different purchases
business buyers actually respond to both ________________ and _______________ factors (reacting to reason and emotion)	economic, personal
business buyers are heavily influenced by factors in the current and expected _______________ ________________	economic environment
see figure 5.7 for major influences on business buyer behavior
interpersonal factors are often what?	very subtle (relationships, friend ships, etc)
see figure 5.8 for the stages of the business buyer decision process
buyers facing new task decisions usually go through all 8 stages of the business buyer decision process; whereas buyers making modified or straight rebuys may what?	skip some stages
what are the 8 stages in the business buyer decision process?	problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, performance review
the buying process begins when someone in the company recognizes a problem or a need that can be met by acquiring a specific product or service:	problem recognition
problem recognition can result from what stimuli?	internal or external
describes the characteristics and quantity of the needed item:	general need description
an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods or production:	product value analysis
buyer conducts one of these to find the best vendors:	supplier search
the buyer invites qualified suppliers to submit proposals:	proposal solicitation
proposal should be _____________ documents, not just technical documents	marketing
the proposals come from the market sellers
the buying center often will draw up a list of the desired supplier attributes and their relative importance in this part:	supplier selection
includes the final order with the chosen supplier or suppliers and lists items such as technical specifications, quantity needed, expected delivery time, return policies, and warranties:	order-routine specification
creates a long-term relationship in which the supplier promises to resupply the buyer as needed at agreed prices for a set time period:	blanket contract
practice of large buyers in which they turn over ordering and inventory responsibilities to their suppliers:	vendor-managed inventory
how does vendor-managed inventory work?	buyers share sales and inventory information directly with key suppliers
in this stage the buyer reviews supplier performance:	performance review
the performance review may lead the buyer to what?	continue, modify, or drop the arrangement
the seller must manage the total ________________ _________________, not just individual purchases because a customer might be involved in many different types or purchases ongoing at a given time	customer relationship
online and electronic purchasing:	e-prcurement
companies can do e-procurement in several ways
putting their purchasing requests online and invite suppliers to bid for the business:	reverse auctoins
companies work collectively to facilitate the trading process:	trading exchanges
companies can also conduct e-procurement by setting up their own what?	company buying sites
can create __________ links with key suppliers	extranet
benefits of e-procurement:	shaves transaction costs; more efficient purchasing; reduces time for order and delivery; eliminates paperwork; helps an organization keep better track of all purchases; frees purchasing people from a lot of drudgery and paperwork
CHAPTER 6: CUSTOMER VALUE-DRIVEN MARKETING STRATEGY
identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each:	target marketing
involves dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes:	marketing segmentation
consists of evaluating each market segment's attractiveness and selecting one or more market segments to serve:	market targeting (or targeting)
involves actually differentiating the firm's market offering to create superior customer value:	differentiation
consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers:	positioning
two questions marketing boils down to:	1. which customers will we serve 2. how will we serve them?
the first two steps of creating value for targeted customers do what?	the first two steps select customers to serve
the last two steps of creating value for targeted customers do what?	the last two steps decide on a value proposition
steps to create value for targeted customers (4):	segmentation, targeting, differentiation, positioning
major segmentation variables for consumer markets (4):	geographic, demographic, psychographic, behavioral
nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate describes what major segmentation variable for consumer markets?	geographic
age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation describe what major segmentation variable for consumer markets?	demographic
social class, lifestyle, and personality are examples of what major segmentation variable for consumer markets?	psychographic
occasions, benefits, user statues, usage rate, and loyalty status are examples of what kind of major segmentation variable for consumer markets?	behavioral
calls for dividing the market into different geographical units, such as nations, regions, state, counties, cities, or even neighborhoods:	geographic segmentation
divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation:	demographic segmentation
which factors are the most popular bases for segmenting customer groups?	demographic
offering different products or using different marketing approaches for different age and life-cycle groups:	age and life-cycle segmentation
age is a ________ predictor of a person's life cycle, health, work or family status, needs, and buying power	poor
has long been used in marketing clothing, cosmetics, toiletries, toys, and magazines:	gender segmentation
the marketers of products and services such as automobiles, clothing, cosmetics, financial services, and travel have long used:	income segmentation
divides buyers into different segments based on social class, lifestyle, or personality characteristics:	psychographic segmentation
communities of core customers with shared characteristics, brand experiences, and strong affinities for a particular brand:	"brand tribes"
divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product:	behavioral segmentation
can help firms build up product usage:	occasion segmentation
requires finding the major benefits people look for in a product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit:	benefit segmentation
what categories can markets be segmented by users:	nonusers, ex-users, potential users, first-time users, and regular users of a product
how can markets be segmented into usage rates?	by light, medium, and heavy product users
heavy users are often a ___________ percentage of the market but account for a ___________ percentage of total consumption	small, high
a market segment can also be segmented by consumer loyalty by being loyal to what 3 things?	brands, stores, and companies
they can be divided into groups based on their __________ of loyalty	degree
marketers rarely ____________ their segmentation analysis to only one or a few variables	limit
what is a system talked about in the textbook that uses multiple segmentation bases to segment americans into diverse groups	Mosaic USA system
some ways of segmentation discussed in the text:	geographically, demographically, benefits sought, user status, usage rate, and loyalty status
business marketers also use some additional variable such as these to segment their markets:	operating characteristics, purchasing approaches, situational factors, and personal characteristics
just as they do within their domestic markets, international firms need to group their world markets into segments with distinct buying ___________ and ________________	needs, behaviors
geographic segmentation assumes that nations ___________ _______________ will have many common traits and behaviors	close together
world markets can also be segmented based on economic factors as in countries being grouped by population _____________ levels or by their overall level of economic __________________	income, development
countries can also be segmented by political and legal factors such as the type and stability of government, receptivity to foreign firms, monetary regulations, and amount of bureaucracy
cultural factors can also be used, grouping markets according to common languages, religions, values, attitudes, customs, and behavioral patterns
when marketers form segments of consumers who have similar needs and buying behaviors even though they are located in different countries:	intermarket segmentation (also called cross-market segmentation)
to be useful, market segments must be:	measurable, accessible, substantial, differentiable, and actionable
the size, purchasing power, and profiles of the segments can be measured:	measurable
the market segments can be effectively reached and served:	accessible
the market segments are large or profitable enough to serve. a segment should be the largest possible homogenous group worth pursuing with a tailored marketing program:	substantial
the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. if men and women respond similarly to marketing efforts for soft drinks, they do not constitute separate segments:	differentiable
effective programs can be designed for attracting and serving the segments. for example, although one small airline identified seven market segments, its staff was too small to develop separate marketing programs for each segment:	actionable
market segmentation reveals the firm's market segment ___________________	opportunities
after market segmentation, the firm now must evaluate the various segments and decide how many and which segments it can serve _________	best
what three factors do firms look at when evaluating different market segments?	1. segment size and growth 2. segment structural attractiveness & 3.company objectives and resources
"right size and growth" is a __________________ matter	relative; companies need to target the market segmentation that suits the specific firm best (small companies may not have the mean to target the biggest and fastest growing segmented marketing group)
a segment is less attractive if it already contains many strong and aggressive _______________ or it is easy for _______ ____________ to come into the segment:	competitors, new entrants
the existence of many actual or potential _____________ _____________ may limit prices and the profits that can be earned in a segment	substitute products
the relative _________________ _______ ________________ also affects segment attractiveness bc buyers with strong bargaining power relative to sellers will try and force prices down, demand more services, and set competitors against one another	power of buyers
a segment may be less attractive if it contains _______________ ____________ that can control prices or reduce the quality or quantity of ordered goods and services	powerful suppliers
a company should only enter segments in which it can create what?	superior customer value and gain advantages over its competitors
consists of a set of buyers who share common needs or characteristics that the company decides to serve:	target market
market-targeting strategies (figure 6.2): list the (4) different levels, starting with targeting broadly and moving to targeting narrowly	(broadly) undifferentiated (mass) marketing --> differentiated (segmented) marketing --> concentrated (niche) marketing --> micromarketing (local or individual marketing) (narrowly)
firms might decide to ignore market segment differences and target the whole market with one offer:	undifferentiated marketing (or mass marketing)
the undifferentiated (or mass) marketing focuses on what as opposed to what?	it focuses on what is common in the needs of consumers rather than on what is different in the needs of consumers
firms decide to target several market segments and designs separate offers for each: (think Tide detergent example)	differentiated marketing (or segmented marketing)
instead of going after a small share of a large market, a firm goes after a large share of one or a few smaller segments or niches: (think Whole Foods vs. Walmart example)	concentrated marketing (or niche marketing)
niching lets smaller companies focus their limited resources on serving niches that may be unimportant to or overlooked by larger competitors
concentrated marketing can be highly profitable but can also involve higher-than-normal risks... why?	because companies that rely on one or a few segments for all of their business will suffer greatly if the segment turns sour
the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations:	micromarketing
micromarketing includes _______________ marketing and __________________ marketing	local, individual
involves tailoring brands and promotions to the needs and wants of local customers;	local marketing
SoLoMo:	(social+local+mobile) marketing
tailoring products and marketing programs to the needs and preferences of individual consumers:	individual marketing (also called one-to-one marketing, mass customization, and markets-of-one marketing)
the process by which firms interact one to one with masses of customers to design products, services, and marketing programs tailor-made to individual needs:	mass customization
which marketing strategy is best depends on the company's what?	resources
if the firm's resources are limited, which marketing makes most sense?	concentrated marketing
the best strategy also depends on product ________________	variability
which marketing is more suited for uniform products, such as a grapefruit or steel?	undifferentiated marketing
products that can vary in design, such as cameras and cars, are more suited to what (2) marketing strategies?	differentiation or concentration
what marketing strategy is appropriate if most buyers have the same tastes, buy the same amounts, and react the same way to marketing efforts?	undifferentiated marketing
profiles can be used to ____________ individual consumers with personalized brand messages and offers	hypertarget
in target marketing, the issue is not really who but rather the _________ and for ________	how, what
marketers have developed sophisticated new ways to extract intimate insights about consumers that border on wizardry:	hypertargeting
how the company will create differentiated value for targeted segments and what positions it it wants to occupy in those segments:	value proposition
the way a product is DEFINED BY CONSUMERS on important attributes-- the place the product occupies in consumers' minds relative to competing products :	product position
products are made in factories, but _________ happen in the minds of consumers:	brands
a product's position is the complex set of perceptions, impressions, and feelings that consumers have for the product compared with competing products
a tool that shows marketers what consumer perceptions of their brands vs. those of competing products on important buying dimensions:	perceptual positioning maps
the position of each circle on a perceptual positioning map shows what?	the position indicated the brand's perceived positioning on two selected dimensions
the size of each circle on a perceptual positioning map shows what?	the size of each circle on the map indicated the brand's relative market share
above all else, a brand's positioning must serve the needs and preferences of well-defined target markets
what three steps make up the differentiation and positioning task:	1. identifying a set of differentiating competitive advantages on which to build a position 2. choosing the right competitive advantages and 3. selecting an overall positioning strategy
to the extent that a company can differentiate and position itself as providing superior customer value, it will gain this:	competitive advantage
if a company offers, the company must _______________	deliver
in what specific ways can a company differentiate itself or its market offer?	it can differentiate along the lines of product, services, channels, people, or image
through product differentiation, brands can be differentiated on what three things?	features, performance, or style & design
service differentiation through what	speedy, convenient service
firms that practice ________________ differentiation gain competitive advantage through the way they design their channel's coverage, expertise, and performance	channel
hiring and training better people than their competitors do:	people differentiation
a company or brand image should convey a product's distinctive benefits and positioning:	image differentiation
symbols provide strong company or brand recognition and image differentiation.. examples?	Michael Jordan, Kobe Bryant, and LeBron James basketball shoe apparel collections from nike, colors (Coca-Cola being red), IBM (blue), UPS (brown)
many marketers think that companies should aggressively promote only _______ benefit to the target market	one
a company should develop a _______________ _________________ __________________ for each brand and stick to it (acronym looks like UPS kinda)	unique selling proposition (USP)
A difference (in a product) is worth establishing to the extent that it satisfied the following criteria:	important, distinctive, superior, communicable, preemptive, affordable, and profitable
the difference delivers a highly valued benefit to target buyers:	important
competitors do not offer the difference, or the company can offer it in a more distinctive way:	distinctive
the difference is superior to other ways that customers might obtain the same benefit:	superior
the difference is communicable and visible to buyers:	communicable
competitors cannot easily cope the difference:	preemptive
buyers can afford to pay for the difference:	affordable
the company can introduce the difference profitably:	profitability
the full positioning of a brand // the full mix of benefits on which a brand is differentiated and positioned	value proposition
see figure 6.4: Possible value propositions:
describe the possible value proposition square:	at the top is price, on the left is benefits //on the benefits (y-axis) the bottom is less and the top is more; at the top under price, the left side is more and the right is less /so, the top left is more for more; the bottom right is less for much less
positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs:	more-for-more (Four Seasons, Rolex, Louis Vuitton, Mercedes)
a company can attack a competitor's value proposition by positioning its brand as offering more for the same price:	more for the same
offering many of the same brands or products at discounted prices based on superior purchasing power and low-cost operations "a good deal":	the same for less
settling for a lower-performance or lower-quality product but not paying near as much as for a different product // meeting consumer's lower performance or quality requirements at a much lower price	less for much less
the winning value proposition that many companies claim:	more for less
company and brand positioning should be summed up in a what?	positioning statement
what form should the statement follow:	to (target segment and need) our (brand) is (concept) that (point of difference) // ex: "To busy multi-taskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture & remember moments..."
once it has chosen a position, the company must take strong steps to deliver and communicate the desired position to its target consumers
easier to come up with a good positioning strategy that it is to ______________ it	implement
CHAPTER 7: PRODUCTS, SERVICES, AND BRANDS
anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need / they also include intangible items such as services, events, persons, places, organizations, and ideas or a mixture of these:	product
a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything:	services
marketing mix planning begins with building an ____________ that brings value to target customers	offering
products are a key element in the overall ______________ _______________	market offering
a market may consist of a __________ ______________ good at one extreme and a _____________ _________________ for which the market consists of primarily a service	pure tangible, pure service
companies are now going beyond simply making products and delivering services, they are creating and managing customer ____________________ with their brand or companies	experiences
product planners need to think about products and services on three levels (each level adding more customer value):	most basic level: core customer value, then actual product, then augmented product
what question does core customer value address?	What is the buyer really buying?
see Figure 7.1: Three Levels of Product (try and describe)	core customer value is at the center, then actual product around that, then augmented product around the outside
at the second level, product planners must turn the core benefit into what?	the actual product
finally, product planners must build and ___________ _____________ around the core benefit and actual product by offering additional consumer services and benefits	augmented product
products and services fall into two broad classes based on the types of consumers who use them:	1. consumer products and 2. industrial products
products and services bought by final consumers for personal consumption:	consumer products
consumer products include:	convenience products, shopping products, specialty products, and unsought products
Review Table 7.1: Marketing Considerations for Consumer Products
consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort:	convenience products
examples of convenience products:	laundry detergent, candy, magazines, fast food
characteristics of a convenience product:	low prices, placed in many locations to be readily available when customers need or want them
less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style:	shopping products
when buying shopping products and services, what do consumer spend a lot of time and effort doing?	gathering information and making comparisons
examples of shopping products:	furniture, clothing, major appliances, and hotel services
consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort:	specialty products
examples of specialty products:	specific brand of cars, high-priced photography equipment, designer clothes, gourmet foods, and the services of medical or legal specialists
a ___________________ automobile is a specialty product because buyers are usually willing to travel great distances to buy one	Lamborghini
buyers normally do not compare specialty products; they only invest time in reaching the dealers that are carrying the wanted products
consumer products that the consumer either does not know about or knows about but does not normally consider buying:	unsought products
most major ____________ ___________________ are unsought until the consumer becomes aware of them through advertising	new innovations
examples of unsought products:	life insurance, preplanned funeral services, blood donations to the Red Cross
unsought products require what?	a lot of advertising, personal selling, and other marketing efforts
those products purchased for further processing or for use in conducting a business:	industrial products
the difference between a consumer product and an industrial product is based on what?	the purpose for which the product is purchased
example: if a consumer buys a lawn mower for use around home, the lawn mower is a consumer product; if the lawn mower is bought for a landscaping business, the lawn mower is an industrial product
what are the three groups of industrial products and services?	materials and parts, capital items, and supplies and services
include raw materials as well as manufactured materials and parts:	materials and parts
industrial products that aid in the buyer's production or operations, including installations and accessory equipment:	capital items
what consists of major purchases such as buildings (factories, offices) and fixed equipment (generators, drill presses, large computer systems, elevators)	installations
what includes portable factory equipment and tools (hand tools, lift trucks) and office equipment (computers, fax machines, desks)?	accessory equipment
what includes operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms)?	supplies
supplies are the _____________ products of the industrial field because they are usually purchased with a minimum of effort or comparison:	convenience
what includes maintenance and repair services (window cleaning, computer repair) and business advisory services (legal, management, consulting, advertising) which are usually supplied under contract?	business services
consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization:	organization marketing
business firms sponsor public relations or ______________ _______________ _____________ campaigns to market themselves and polish their images	corporate image marketing
consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people:	person marketing
involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places:	place marketing
consists of using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being (bringing about beneficial social change):	social marketing
marketers made product and service decisions at three levels:	1. individual product decisions 2. product line decisions, and 3. product mix decisions
Figure 7.2: Individual Product Decisions: (list the 5 boxes in the figure)-- the purpose of all these attributes is to create core customer value	product attributes --> branding --> packaging --> labeling --> product support services
how are benefits of a product communicated and delivered by product attributes?	quality, features, and style & design
one of the marketer's major positioning tools / affects product or service performance; thus, it is closely linked to customer value and satisfaction:	product quality
quality can be defined as "______ _______________"	no defects
an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes:	Total Quality Management (TQM)
an approaching in which companies are viewing quality as an investment and holding quality efforts accountable for bottom-line results:	return-on-quality
what are the two dimensions of product quality:	level and consistency
at the quality level, product quality means ____________________ quality-- the product's ability to perform its functions	performance
at the consistency level, product quality means _________________ quality-- freedom from defects and delivering a targeted level of performance	conformance
being the first producer to introduce a valued new _____________ is one of the most effective ways to compete	feature
_______________ are a competitive tool for differentiating the company's product from competitors' products	features
companies can learn and identify new features to add to products by doing what?	periodically survey buyers who have used the product asking various questions
simply describes the appearance of a product: (eye catching or yawn producing)	style
more than skin deep-- going to the very heart of the product; contributing to a product's usefulness as well as to its looks:	design
in designing a product, the designers should think less about technical product specifications and more about what?	how the customers will use and benefit from the product
a name, term, sign, symbol, or design or a combination of these that identifies the maker or seller of a product or service:	brand
branding helps the seller to ______________ markets	segment
involves designing and producing the container or wrapper for a product:	packaging
primary function of the package:	to hold and protect the product
list the three things a label might do for a product:	1. identifies, 2. describes (who made it, where it was made, when it was made, its contents, how it is to be used, how to use it safely), and 3. promote the product
what is the most prominent federal and state law regulation regarding labeling:	The Fair Packaging and Labeling Act of 1966
requires sellers to provide detailed nutritional information on food products:	The Nutritional Labeling and Educational Act of 1990
regulate the use of health-related terms such as low fat, light, high fiber, and organic:	The Food and Drug Administration (FDA)
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 line
the number of items in the product line:	product line length
a company can expand its product line in two ways:	1. line filling 2. line stretching
involves adding more items within the present range of the line:	line filling
eating up sales of the company's own existing products: (also don't want to cause customer confusion)	cannibalization
occurs when a company lengthens its product line beyond its current range:	product line stretching
product lines can be stretched both ________________ and _______________	downward and upward
consists of all the product lines and items that a particular seller offers for sale:	product mix (or product portfolio)
a company's product mix has four important dimensions:	width, length, depth, and consistency
refers to the number of different product lines the company carries:	product mix width
refers to the total number of items a company carries within its product lines:	product mix length
refers to the number of versions offered for each product in the line:	product mix depth
refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other aspect:	product mix consistency
services now account for _____% of the U.S. gross domestic product (GDP):	80%
services are growing even faster in the world economy, making up almost ____% of the gross world product:	64%
what are the four special service characteristics when designing marketing programs:	1. intangibility 2. inseparability 3. variability and 4. perishability
means that services cannot be seen, tasted, felt, heard, or smelled before they are bought:	service intangibility
means that services cannot be separated from their providers, whether the providers are people or machines:	service inseparability
means that the quality of services depends on who provides them as well as when, where, and how they are provided:	service variability
means that services cannot be stored for later sale or use:	service perishability
links service firm profits with employee and customer satisfaction:	service profit chain
what are the five links in the service profit chain:	1. interval service quality 2. satisfied and productive service employees 3. greater service value 4. satisfied and loyal customers 5. healthy service profits and growth
superior employee selection and training, a quality work environment, and strong support for those dealing with customers, which results in:	internal service quality
more satisfied, loyal, and hardworking employees, which results in:	satisfied and productive service employees
more effective and efficient customer value creation, engagement, and service delivery, which results in:	greater service value
satisfied customers who remain loyal, make repeat purchases, and refer other customers, which results in:	satisfied and loyal customers
superior service firm performance:	healthy service profits and growth
services marketing also requires _______________ ________________ and _________________ _________________	internal marketing and interactive marketing
means that the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction:	internal marketing
see figure 7.4 for the three types of service marketing
means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter:	interactive marketing
service companies face three major marketing tasks:	1. service differentiation 2. service quality 3. service productivity
a brand represents everything that a product or service ________________ to consumers	means
the differential effect that knowing the brand name has on customer response to the product and its marketing:	brand equity
what is brand equity a measure of?	the brand's ability to capture consumer preference and loyalty
what 4 consumer perception dimensions does the ad agency Young & Rebicam's BrandAsset Valuator use:	1. differentiation 2. relevance 3. knowledge 4 esteem
the total financial value of a brand:	brand value
the value of customer relationships that the band creates (and fundamental asset underlying brand equity):	customer equity
Figure 7.5: Major Brand Strategy Decision: (headers of the boxes)	brand positioning, brand name selection, brand sponsorship, and brand development
marketers can position their brands at any of three levels: (lowest to highest)	product attributes (least desirable bc competitors can just copy), product benefits, and product belief and values
brands should strive to become ____________, products or services that "inspire loyalty beyond reason"	lovemarks
brand names should include 6 desirable qualities:	1. suggest something about the product's benefits and qualities 2. be easy to pronounce, recognize, and remember 3. should be distinctive 4. should be extendable5. translate easily in foreign languages 6. should be capable of registration&legal protection
manufacturer has 4 sponsorship options:	1. launch a national brand (or manufacturer's brand) 2. sell to resellers that use a private brand (also called a store brand or distributor brand) 3. market licensed brands 4. join forces with another company to co-brand a product
store-brands (or private brands) yield, on average, _____% savings	38%
licensing a brand name or symbols (characters, celebrities etc) can generate HUGE profits. example?	Disney
occurs when two established brand names of different companies are used on the same product:	co-branding
Figure 7.6 explains Brand Development Strategies: explain it:	on the top is product category and on the left of the chart is brand name: then you have existing towards top left corner and new on the right and bottom/ (top left): line extension; (top right) brand extension; bottom left: (multibrands); new brands last
occur when a company extends existing brand names to new forms, color, sizes, ingredients, or flavors of an existing product category:	line extension
a line extension works best when it does what to competing brands and not when it does what to its own?	does best when it takes sales away from competing brands, not when it "cannibalizes" the company's other items
extends a current brand name to new or modified products in a new category:	brand extension
a brand extension gives a new product instant recognition and faster acceptance; it also saves the high advertising costs usually required to build a new brand name
success of a brand can rest on three pillars:	1. extension should have a logical fit with the parent brand 2. parent brand should give the extension a competitive advantage in a new category 3. the extension should offer significant sales and profit potential
companies often market many different brands in a given product category / offer a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a large market share:	multibrands
what is a major drawback of multibranding?	that each brand might obtain only a small market share, and none may be very profitable.. if this happens, the company should reduce the number of brands they sell in a given category and tighter screening procedures for new brands
CHAPTER 8: DEVELOPING NEW PRODUCTS & managing the product life cycle
a firm can obtain new products in two ways:	1. acquisition (by buying a whole company, a patent or a license to produce someone else's product or 2. through the firm's own new product development efforts
what all does new products entail?	original products, product improvements, product modifications, and new brands that the firm develops through its own R&D efforts
what percent of all new consumer packaged products introduced by established companies fail?	60%
what fraction of new product concepts are never even launched?	two-thirds
Figure 8.1: Major Stages in New Product Development (8):	1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
the systematic search for new product ideas:	idea generation
when a company invites broad communities of people-- customers, employees, independent scientists and researches, and even the public at large-- into the innovation process:	crowdsourcing
truly innovative companies do not rely on one source or another for new product ideas, instead they develop extensive innovation networks that capture ideas and inspiration from every possible source
what is the purpose of idea generation?	to create a large number of ideas
the first idea-reducing stage is what, which helps spot good ideas and drop poor ones as soon as possible:	idea screening
what does it mean when executives form write ups on their new product ideas in a standard format that can be reviewed by a new product committee? try and describe a little:	the write-up describes the product or service, the proposed customer value proposition, the target market, and the competition, makes rough estimates of market size, product price, development time and costs, manufacturing costs, and rate of return
what is an R-W-W? for new product screening?	"real, win, worth doing" / (is it real? as in a real need and desire for the product) ; (can we win? as in does it have sustainable competitive advantage) ; (is it worth doing? as in does it fit the company's overall strategy)
an idea for a possible product that the company can see itself offering to the market:	product idea
a detailed version of the idea stated in meaningful consumer terms:	product concept
the way consumers perceive an actual or potential product:	product image
calls for testing new product concepts with groups of target consumers:	concept testing
designing an initial marketing strategy for introducing this product to the market:	marketing strategy development
what 3 parts make up the marketing strategy development?	1. describes the target market 2. the planned proposition 3. the sales, market-share, and profit goals for the first few years
involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives:	business analysis
if the product concept passes the business test, it moves into this; here, R&D or engineering develops the product concept into a physical product:	product development
if the product passes both the concept test and the product test, the next step is this; at this stage, the product and its proposed marketing program are introduced into realistic market settings:	test marketing
new products and tactics are tested among controlled panels of shoppers and stores:	controlled test markets
researchers measure consumer responses to new products and marketing tactics in laboratory store or simulated online shopping environments:	simulated test markets
both controlled test markets and simulated test markets reduce the costs of test marketing and speed up the process
introducing the new product into the market:	commercializaiton
a company launching a new product needs to decide on:	timing to launch the product and where to launch the new product (single location, region, national market, or the international market)
above all else, new product development must focus on creating what	customer value
focuses on finding new ways to solve customer problems and create more customer-satisfying experiences:	customer- centered new product development
most successful products:	ones that are differentiated, solve major customer problems, and offer a compelling customer value proposition
starting with idea generation and ending with commercialization; one company department works individually to complete its stage of the process before passing the new product along to the next department and stage:	sequential product development
the approach where company departments work closely together in cross-functional teams, overlapping the steps int he product development process to save time and increase effectiveness:	team-based new product development
under team-based new product development, the product isn't passed from department to department, instead, the company assembles a team of people from various departments that stays with the new product from ___________ to ____________	start to finish
a system to collect, review, evaluate, and manage new product ideas:	innovation management system
the innovation management system approach yields two favorable outcomes:	1. it helps create an innovation-oriented company culture 2. it will yield a larger number of new product ideas, among which will be found some especially good ones
the course that a product's sales and profits take over its lifetime:	product life cycle (PLC)
the PLC has 5 distinct stages:	1. product development 2. introduction 3. growth 4. maturity 5. decline
begins when the company finds and develops a new product idea; during this stage, sales are zero, and the company's investment costs mount:	product development
a period of slow sales growth as the product is introduced int he market; profits are nonexistent in this stage because of heavy expenses:	introduction
a period of rapid market acceptance and increasing profits:	growth
a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers; profits level off or decline because of increased marketing outlays to defend the product against competition:	maturity
the period when sales fall off and profits drop:	decline
the PLC concept can describe what?	a product class (gasoline-powered automobiles), a product form (SUVs), or brand (the Ford Escape)
what have the longest life cycles?	product class
what tends to have the standard PLC shape?	product forms
figure 8.3 shows charts of how the PLC concept can be applied
a basic and distinctive mode of expression: (think homes: traditional vs ranch)	style
a currently accepted or popular style in a given field: (the business look then vs the business look now)	fasion
temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity: (think those hats everybody wore to state games last season or Silly Bandz)	fad
starts when a product is firs launched:	introduction stage
the stage in which sales will start climbing quickly:	growth stage
the stage in which a product's sales growth will slow down:	maturity stage
when the company tries to increase consumption by finding new users and new market segments for its brands, it is:	modifying the market
when the company changes characteristics such as quality, features, style, packaging, or technology platforms to retain current users or attract new ones, it is:	modifying the product
when a company improves sales by changing one or more marketing mix element, it is:	modifying the market mix
the stage where the sales of a product dip (decline), either declining slow or plunging to zero, or dropping to a low level where they continue for many years:	decline stage
a company must identify products in the decline stage and decide to do which three options with them?	maintain, harvest, or drop them
repositioning or reinvigorating the product in hopes to move it back into the growth stage of the PLC:	maintin its brand
reducing various costs of the product (plant and equipment, maintenance, R&D, advertising) hoping that sales hold up:	harvesting the product
selling the product to another firm or simply liquidating it at salvage value:	dropping the product from its line
See Table 8.2 for a Summary of Product Life-Cycle Characteristics, Objectives, and Strategies
established the Consumer Product Safety Commission, which has the authority to ban or seize potentially harmful products and set server penalties for violation of the law:	The Consumer Product Safety Act of 1972
second largest litigation concern? (behind labor and employment matters	product liability
some companies are now appointing ______________ _______________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems:	product stewards

In which stage of the adoption process does the consumer considers whether trying the new product makes sense?

3. Product Evaluation. Next, in the trial stage, the consumer tries the product on a small scale to improve its value estimate. The consumer considers whether trying the new product makes sense.

Is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set?

Alternative evaluation is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.

Is when the consumer becomes aware of the new product but lacks information about it?

Awareness: The consumer becomes aware of the new product, but lacks information about it.

What happens in the evaluation stage of the adoption process quizlet?

What happens in the evaluation stage of the adoption process? The consumer considers whether trying the new product makes sense. What describes the purchase decision stage? The buyer makes a decision about which brand to purchase.

In the __________ stage, the consumer considers whether trying the new product makes sense.

In which stage of the adoption process does the consumer considers whether trying the new product makes sense?

Is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set?

Is when the consumer becomes aware of the new product but lacks information about it?

What happens in the evaluation stage of the adoption process quizlet?

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