32 Cards in this Set
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The Principal of Reciprocity
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if someone does something nice for you, you have the obligation to do something nice back
Company does something nice for you, you give them business
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The Principal of Consistency
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a need to keep our behavior consistent
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The Principal of Social Validation
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peer approval and social acceptance. Do same behavior as group to fit in
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The Principal of Liking
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more likely to say yes or do something for someone you like
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The Principal of Authority
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do things for people because they are in a position of authority
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The Principal of Scarcity
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you like being able to have choices so if there is only one left you feel the need to buy it so you don't miss out
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The Consumer Decision Process
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The more important the decision the longer we spend on the process
Need Recognition
Information Search
Alternative Evaluation
Purchase
Post Purchase
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Need Recognition (The Consumer Decision Process)
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Decide you want or need a product
Functional needs
Psychological needs: related to status and reputation
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Information Search (The Consumer Decision Process)
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Internal search: in your mind, remember what the product is
External search: online, ask someone, ads,
Factors effecting how much you search
-Perceived benefits against perceived costs (is it worth it to search more)
-Locus of control (if I feel like I can control the outcome or am…
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Alternative Evaluation (The Consumer Decision Process)
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Determined by information stage
Attribute sets:
-Universal: everything that's on the market
-Retrieval: all the brands we can remember
-Evoked: all the products we would consider buying
Evaluative criteria
Determinant attributes: the attributes that vary according to the situatio…
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Purchase (The Consumer Decision Process)
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Increase conversion rate: the number of people who are shoppers that become buyers
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Post Purchase (The Consumer Decision Process)
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You are going to tell more people if you are unhappy with the product than if you are happy
Cognitive dissonance: a disagreement with what you think about a product and your behavior towards the product
-Buyers remorse, post purchase dissonance
-You can change your mind and decide to…
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Factors Influencing the Consumer Decision Process
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The marketing mix
Psychological factors: individual factors that vary from one person to another
-Motives
--Physiological
--Safety
--Love and belonging
--Esteem: powerful and successful
-Attitudes
-Perceptions
-Learning
-Lifestyle
Social Factors
-Family
-Reference groups…
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Involvement and Consumer Buying Decisions
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High involvement
-Greater attention
-Deeper processing
-A central route to persuasion: appeal directly to customer, appeal logically and rationally
-Develop strong attitudes and stronger purchase intentions
Low involvement
-Less attention
-Peripheral processing
-Weak attitudes…
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Globalization
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The process my which goods, services, people, ideas, information, capitol cross international borders
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Offshoring
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the assembly of goods in another country
now its banking, accounting, medicine, call centers, etc
changes in the law make it easier, educated work force, changing demographics, increasing populations
GATT was formed in 1948 covered about a 1/5 of world trade
Replaced in 1994 by World…
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Assessing the Global Market
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Economic analysis: general economic environment
Evaluating Market Size and Population Growth Rate
Evaluating Real Income
Analyzing Infrastructure
Analyzing Government Actions
Analyzing Sociocultural Factors
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Economic Analysis: General Economic Environment (Assessing the Global Market)
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GRP: the value of goods and services produced in a country in a year
Gross national income: GDP plus income earned abroad (nationals abroad)
Purchasing power parody: if exchange rates are equal then things should be the same in other countries, but imbalance
Human development index: …
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Evaluating Market Size and Population Growth Rate (Assessing the Global Market)
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How the rapidly growing countries have an increasing population rate, but the well developed ones have a stagnant or decreasing
Where are they (city or rural)
Age of the population
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Evaluating Real Income (Assessing the Global Market)
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Whether or not people can afford to buy the products
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Analyzing Infrastructure (Assessing the Global Market)
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Infrastructure: the basic facilities, services, and installations needed for a community or society to function
Transportation:
Distribution channel: can I get my product there in a timely and efficient manner
Communication: media and how to get the word out
Commerce: any regulatory …
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Analyzing Government Actions (Assessing the Global Market)
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Tariff: taxes on importing goods
Quota: limits the number of products you can sell
Exchange control: how to regulate exchange currency relative to other countries
Trade agreements: trading blocks that open up trade within a region
If the value of our currency goes up relative to ot…
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Analyzing Sociocultural Factors (Assessing the Global Market)
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Power distance: how we accept social inequality
Uncertainty avoidance: the extent to which we have rules, laws and regulations for orderly, consistent life in society
-Organized procedures
Individualism: how acceptable is it for an individual to do what they want
-Collectivism: obli…
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Choosing a Global Entry System
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Export: low risk and limited control
Franchising: franchiser sells the rights to the franchisee. They operate it but very specific rules to follow. More control, but more risk because your name is on the product
Strategic alliance: collaborate on making products come to market
Joint v…
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Choosing a Global Marketing Strategy: Target Market (STP)
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Cultural nuances
Subcultures
View of product and consumer role
Different positioning
Adaptation
Single positioning strategy
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The Global Marketing Mix
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Product or service strategies
-Same, similar or totally new
-High technology and hands on are usually the same
Pricing
-Tariffs: need to factor in tariff to price to still make profit
-Quotas: if you can only sell a certain amount make price to still make profit
-Anti-dumping poli…
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STP Process
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Step 1: Establish Overall Strategy or Objectives
Step 2: Segmentation methods
Step 3: Evaluate Segment Attractiveness
Step 4: Selecting a Target Market
Step 5: Develop Positioning Strategy
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Step 1: Establish Overall Strategy or Objectives
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Check yourself
Derived from mission and current state
SWOT
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Step 2: Segmentation Methods
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Geographic: continent or within
Demographic: age, gender, income
Geodemoraphics: people who are similar demographically live close geographically
-PRIZM: potential rating index my zip market
-Nielson observe zip codes and defines the prominent groups there
Psychographic: lifestyle…
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Step 3: Evaluate Segment Attractiveness
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Descriptive crieteria for evaluating segment attractiveness
Identifiable
-I can tell who is I the segment
-It is unique and responds differently to marketing mix
Substantial
-Big enough and buying power
Reachable
-Know the product exists, understand what it can do, recognize how to…
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Step 4: Selecting a Target Market
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Match what the company does best with most attractive target market
Undifferentiated or mass marketing: one market. One product should appeal to every equally
-Early in product life cycle
Differentiated: multiple, different segments. Make several products to appeal to multiple segme…
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Step 5: Develop Positioning Strategy
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Create a clear, unique perception of the product relative to the competition
The place the product occupies in the mind of the consumer
Position methods
-Value: best buy for your money
-Salient attributes
-Symbol
-Competition
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MKTG 350: Exam 1