Monica Elisa

A set of buyers sharing common needs or characteristics that a firm chooses to serve.

Market Fragmentation

• 1. Segmentation - dividing a large market
• 2. Selecting -choose which segment to make customers
• 3. Positioning - placing a product or brand in consumers mind

• Demographics - age, income, education, ethnicity
• Psychographic - AIOs: Activities, Interests, Opinions
• Behaviors - Brand loyalty, purchase parttern, usage occasions

Dividing the total market into different segments based on customer characteristics, selecting one or more segments, and develeoping products to meet those segments' needs.

The process of dividing a larger market into smaller pieces based on one or more meaningful shared characteristics

dimensions that divide the total market into fairly homogeneous groups, each with different needs and preferances.

ie. gender and hobbies

Marketers evaluate the attractiveness of each potential segment and decide in/(select) which they will invest resources try to turn them into constomers

• Evaluating
• Selecting

• Homogeneous within & Heterogenous Between
• Substantial - big enough in size
• Meaningfully Defined - People you can get to

describes a profile or description of the "typical" customer in a segment

is to place a product or brand in the consumers' mind on important attributes in comparison to the competition

re-develop positioning  of a product/brand to respond to marketplace changes

to bring back a once popular brand

How we change the position of the position of the company.

Marlboro from womern to men

is a distinctive image that captures the brand's character and benefits. Their image. ie. Disney = fun, kids

Developing a marketing strategy that aims at influencing how a particular market segmen percieves product/brand in comparison to the competition.

• Analyze Competitors
• Offer a good service with different benefits
• Match elements of marketing mix to the selected segment
• Evaluate target market's responses and modify strategies if needed.

Competing markets and consumer perception.

Walmart and Kmart vs Nordstrom and Neuman Marcus

• Why and how people buy?
•    Involvment and problem solving
•    The decision making process

Internal, situational, and social influences

• Internal - own experience
• External - reviews, family/friends experiences

• Control - what the company puts out themselves (bias)
• Noncontrol - Customer ratings (non bias)

relative importance of percieved consequences and risks of a decision

-higher the cost the higher involvmen

• Consumer recognizes a need
• Marketing Objective - help consumers recognize an imbalance between their present status and preffered state.

Criteria - product characteristics consumers use to compare competing alternatives

Market Ob. - Determine which characteristic/attribute is the most influential on consumers and make that one most superior and prominent

• 1. Purchase Inention - decision to buy mose preferred brand
• 2a. Brand Loyalty Heuristic
• 2b. Country of Origin Heurisic
• 3. Purchase Deciision

Heuristic - mental rule of thumb for a speedy decision

• 1. Consumers Expectations
• 2. Actual Quality/Performance of Product
• 3a. Satisfied
• 3b. Unsatisfied

• Internal
• Situational
• Social

• Motivation
• Perception
• Attitudes
• Personality
• Lifestyle

• Physical Environment - instore displays, surroundings, arousal
• Time - is their time to make a decision

Culture and Values - Languages, Laws, Customs and Norms

People that have significant effect on individual's evaluation, aspirations or behavior

Person who influences others' attitudes or behaviors

person changes as reaction to real or imagined group pressure

strongest conformaty effects come from gender roles

Marketing of goods and services that businesses and other organizations buy for purposes other than personal consumption

• Produce goods and Services - Manufacturers
• For resale - Wholesalers/retailers/rentals
• To support operations - other organizations

• Multiple Buyers
• Small Numer of Customers
• Geographic Concentration
• Large Size of Purchases

• Derived Demand
• Inelastic Demand
• Fluctuating Demand
• Joint Demand

• Deman for business products is cause by/derived from demand for consumer good or services
•    -B2B marketers must be alert to changes in consumer trends

• Demand of produce does not change because of increases/decreases in price
•    -price increases in partshas little effect

ie. gas

Demand in busienss market flucuates more than consumer markets.

ie. John Deer - such a big purchase that will only be needed to make once every 5 years

Demand for 2 or more goods used tog together to create a product

ie. Computer - monitor, keyboard, mouse, computer

Identifies how much information will need to be collected for purchase decision

• Straight Rebuy
• Modified Rebuy
• New-task Buy

Routine purchases that require minimal decision making - toilet paper

Previous purchases that require some change and limitd decision making

ie. printer - need one but updated one

New and complex or risky purchases that require extensive decision making

ie. new car

Professional Buyer - Trained professionals typically carry out buying in B2B markets.

Buying Center - Group of people who influence and participate in purchasing decisions.

• Iniator                                                                   Influencer
• User                           Buying Center                     Decider
• Gate Keeper                                                            Buyer

• Problem Recognition
• Infomration Search
• Evaluation of Alternatives
• Product and Supplier Selection
• Post Purchase Evaluation

Process of collecting, analyzing, and interpreting data about consumers, competitors, and the business environment in order to improve marketing effectiveness

Data collected on regular babsis and available to multiple firms

Data collected for a particular firm to answer a specific question.

Primary Data  is information collected directly from respondents to specifically address the question at hand

Seconday Data has been collected for some purposes other than the problem at hand.

• Customer Interviews
• Focus Groups
• Case Study - examination of firm
• Ethnography - learn how products are used from participants
• Productive Techniques - explore peoples underlying feelings

• Base on large numbers of observations
• Results typically expressed in quantitative terms (averages, percentages, stats)

Cross Sectioinal Design - Questionnaires at one point in time

Logitudinal Design - tracks the responses of the same sample of respondents over time

A technique to understand cause and effect relationships: a change in one thing causes a change in something else.

• Goods, services, ideas that satisfies customer needs.
•    -tangible products; services; ideas;people; places
•    - everything a customer receives in an exchange
• Productive Value proposition
•    -benefits the consumer will recieve if she buys the product

Intangible products (acs, efforts, or performances) exhanged from producer to user without ownership rights.

• Intangibility - customers cant see, touch, or smell, service
• Inserperability - can't seperate production from consumption
• Perishability - cant store a service for later sale or consumption
• Variability - cant standardize the same service performed by the same individual

• Core Product - Basic Benefits ie Car:transporation
• Actual Product - Brand, Features, Appearance. ie. mazda, silver,
• Augmented Product - Warranty, Instalation, Deliver, Customer Support Services.

• Equipment
• Raw Material
• Special Services
• Component Parts
• Maintenance, Repair, Operating products

• Durable Goods (long term)
• Nondurable Goods (short term)

• Convenience Products
• Shopping Products
• Unsought Products
• Specialty Products

nondurable, frequently purchased, minimum effort, low priced, widely available.

• -staple products (bottled water)
• -impulse products (candy bars)
• -ermergency products (tampons)

purchased infrequently with significant effort in comparing the various offerings, some brand loyalty

• -attributes based shoppin products (cell phone)
• -price based shoppin products (cars)

little awarness/interest until need arises; often with new product/innovation; require much advertising and personal selling

unique characteristics that are important to buyers; often involves considerable effort; often use status appeal & limited distribution to maintain status

A product must be entirely new or changed significantly to be called new, and a product may be called new for only six months.

Innovation; anything that customers percieve as new and different

• Discontinuous Innovations
• Dynamically Continuous Innovations
• Continuous Innovations

Totally new product to the world; Requires a great amount of learning. e.g. television, computer, automobile

Significant change to an existing product; requires some learning

Modification to an existing product to set it apart from competitors; requires little learning

New product development can be creating totally new products or making an existing product better

process by which a consumer or business customer begins to buy and use a new good, service, or idea

process by which the use of a product spreads throughout a population

• Awarness
• Interest
• Evaluation
• Trial
• Adoption
• Confirmation