Marketing Exam 2 Study Guide Segmenting Customers and Positioning Products o Targeting Strategies Undifferentiated Strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product It also must have a homogeneous market Examples Sugar Salt Produce Differentiated Strategy in which an organization targets two or more segments by developing a marketing mix for each segment Advantages Sales increase Disadvantage Product costs go up Example When Dove began marketing to men as well as women Concentrated Strategy in which an organization targets a single market segment using one marketing mix Advantages allows Company to specialize in one target market Disadvantages You put all your eggs in one basket Are the characteristics of individuals groups or organizations used to divide a market into segments Demographic Variables Describe the characteristics of a population gender age education religion etc o Apple Geographic Variables Based on where you live Climate Terrain City Size Urban Rural Psychographic Variables Based on ones personality o McDonalds Motives Lifestyles o Mountain Dew targets thrill seekers Behavioristic Variables Based on a consumers behavior towards a product Usage Loyalty Price Sensitivity Benefits o Segmentation Variables o VALS The Value And Lifestyle Survey helps classify customers based on psychological characteristics that are Correlated with purchasing behavior Related to Key demographics o Perceptual Mapping Marketers often try to influence and shape consumers concepts of perceptions of products through advertising The idea is to position products in a multidimensional space according to their relative similarities or customer preferences Marketing Exam 2 Study Guide Consumer Behaviors o High Involvement Products only purchased after the consumer has don t extensive research and careful consideration Usually are products that others will notice and come with high level of risk because of its high price o Low Involvement products Consumer does not think too much before purchasing these Less risk and less expensive Leads to Consumer Irrationality o Problem Solving Strategies in Consumers Routinized Choices that are made with barely any thought Brands help consumers make these decisions with advertising and product positioning Coca Cola Limited This decision requires the consumer to think for a decent amount of time and gather some information before purchase Usually the consumer is very familiar with the product but not always the actual brand Restaurants Clothes Extended This is when the customer tries to accumulate as much information as possible both internally memory and externally advertising This decision is often effected by magazines and other sources which help consumers sort out the various brands they are choosing from Forbes US News Car Driver Impulse Involves no conscious planning but results from a powerful urge to buy something immediately Gum at convenience stores o Consumer Decision Making Process Problem Recognition Occurs when a buyer becomes aware of a difference between a desired state and an actual condition Marketers use Sales personnel advertising and packaging to help trigger recognition of such needs or problems o FSU bookstore advertising new calculator at beginning of school year Makes student think he she may need a better calculator Information Search After recognizing the problem or need a buyer searches for product information There are two different aspects of an Information Search Marketing Exam 2 Study Guide Internal Search Buyers search their own memories for information about products that might solve their problem o Requires prior experience repeat purchase External search Buyers seek info from outside sources Friends Advertisements Newspaper o Rate My Professor Evaluation of Alternatives After the buyer gathers information they come up with a group of brands products that they must evaluate this is called the consideration evoked set If you re buying a comp it may be Apple Dell HP Then a buyer uses evaluative criteria to make is decision This is based on characteristics such as size style price etc Purchase Product Selection Selection is based on the outcome of the evaluation stage and on other dimensions Most consumers are cognitive misers Mental Rules of Thumb that lead to a speedy decision o Higher Price Higher Quality o Country of Origin Wine Cars Watches Post Purchase Evaluation After the purchase the buyer begins to evaluate the product to ascertain if its actual performance meets expected levels Cognitive Dissonance Doubts in buyers mind about whether purchasing the product was the right decision o Fancy way of saying Buyers Remorse o Three Factors That Influence the Consumer Decision Making Process Situational result from circumstances time and location that affect the consumer buying decision process Physical Surrounding Social Time Reason Mood Psychological Factors that determine peoples general behavior thus influencing their behavior as customers Perception Process of selecting organizing and interpreting information inputs to produce meaning Selective exposure Process by which some inputs are selected to reach awareness and others are not Selective Distortion changing or twisting information based on your beliefs Selective Retention Remembering information inputs that support your beliefs and personality and forgetting those that do not Marketing Exam 2 Study Guide Motive A buyer s internal energizing force that directs a person s activities toward satisfying their needs or achieving goals Developing New Products Social The forces that others exert on ones buying behavior o Goals of product development Understanding New Product Development from the Firm s Perspective and New Product Adoption from the Customer s Perspective The Swiffer Example o Five steps to developing a new product o Idea Generation Neurofocus found Cheetos lovers like orange mess on hands Screening Doggie air conditioner ex Concept analysis Who is target market how much will it cost to produce How much will consumer pay for it focus group Test Markets Then test in areas Jacksonville 15 Albany Schenectady Troy NY 1 Launch Qwikster worst ever o Product adoption Awareness Interest Buyer becomes aware of the product Buyer seeks information and is receptive to learning about the product Evaluation Buyer considers product s benefits and decides whether to try it Buyer examines tests or
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