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Ch. 6 Brands, buying process, and product development, Key Terms - Coggle…
Ch. 6 Brands, buying process, and product development
Businesses want to maximize profits by offering sought-after goods
4 things marketers want to maximize:
Loyalty
Consumption
try and buy more next time
Notice them
services
promotions
advertisements
goods
brands
Consumer Satisfaction
they want volume and quality
want to know that consumers like what they buy, products and services satisfies needs in ways that are pleasurable or comfortable.
Competition is a continual threat and stimulator
they can respond to competition by:
buy out the competition through mergers
develop a new strategic plan
improve customer service
improve product quality
introduce a new product
increase advertising or change ad placement
reduce prices
using annual income as a metric
about 10% of Americans can be considered upper class
70% middle class
20% working or lower class
some sources %'s can be adjust slightly
some middle class's % can be around 66%
and as high as 25% for working or lower class
a more broadly used determinant of population segments is the socioeconomic index (SEI)
studies indicate that indicate that income does not cause or direct consumption nearly as much as education & occupation
A brand such as Nike is a distinctive name identifying a product or manufacturer
Consumers go through six steps in the buying process
Postpurchase
6). Evaluating after purchase through use and comparisons
customer satisfaction
Cognitive dissonance
Purchase
5). Buying
Prepurchase
2). Searching for information
Done through internal and external searches
external searches:
opinions, attitudes, and behaviors of others
reading materials
marketing communications
convenience plays a large part in consumer decision-making
may use following criteria for navigating info:
appropriateness
existence of various alternatives
attractiveness
performance characteristics
Usefulness or caring
3). Evaluating alternatives
Consumers evaluate product characteristics based on the following:
cost
accessibility or availability
features
style
perceived risk
sampling
1). Assessing Need
determine how much pleasure or pain will be derived from a product or service.
Some consumers are more label-conscious and deal-prone than others.
Doorbusters
spans generations
enjoy the thrill of the chase, bargains, and social aspects of joining others
Online convert
age under 40
being devoted to online shopping
Ecoshopper
age 18–35
wants to buy from companies that are transparent: how and where products are made, recycle and protect environment, support causes
you can consider relationships w/ products
Nostalgic attachment
Interdependence
product that's a part of a daily routine that creates interdependency
Self-concept attachment
product helps establish self-concept and identity
Love
Product brings love, warmth, passion, or other strong emotion
4). Selecting a product or service
The trend is toward smaller family size in Europe, Japan, and the United States.
The three largest ethnic/racial groups in the United States are:
Hispanics/Latinos
African Americans
Asian Americans
each group has individual characteristics and consumption needs that differentiate them from the general population
Marketers are aware of ethnic groups' consumption needs and market to them
New networks are springing up to serve a growing demand for multicultural fare.
Media and business study market segments and life stages that are groupings of people
Product development 4 stages
Growth
easily recognized brands are aggressively marketed
Maturity
product is well known and accepted, my be reenergized with ne formulas or packaging
Introduction
Product is developed and introduced to market
Dormancy/Decline (An possible revitalization)
may no longer be manufactured, can be come popular again and remarketed
Key Terms
actively acquired information
information sought after for its own sake
eg. test-driving a car
banner ads
adds that come up at the top of a website
boundary time
transition time between home and work
brand
a distinctive name Identifying a product or a manufacturer
brand image
set of perceptions that consumer have formed about a brand
such as a brand being perceived as targeting the young
brand perception
how consumers view or rate a brand
cognitive dissonance
the tendency to accentuate the benefits (looking for reinforcing information that the consumer made a good purchase) and downplay the deficits
consumer behavior
The complex buying behavior of consumers
consumer cost (nonprice cost)
the total cost involved in owning or using the product
credence goods
goods that can never get all the needed and relevant information and/or can't evaluate the goods themselves. are often under government regulation and protection
customer satisfaction
distribution
products being available in places near target customers
ecoshopper
people age 18-35, w/ the philosophy of " buying from companies that are transparent about: how and where their products are made, promote the environmental and recycling, support causes."
experience goods
refers to those about which the consumer gets relevant information after purchasing them.
external search
looking at advertisements, reading articles, going on the internet, or asking others what they think about a product
family
consists of 2 or more persons related by birth, marriage, or adoption and residing together in a household.
family brand
when the same brand name is given to several products
forecast
having an idea of future sales of existing products or demand for products in development
household
all persons who occupy a "housing unit", that is a house, an apartment or other group of rooms, or a single room that constitutes "separate living quarters".
image
an impression or attitude of a product, person, brand, or place is formed when people develop belifs, ideas, preceptions, or impressions about a product, person, or brand
influencer
When a person talks about a product or service they believe is best, w/ others sharing knowledge and info, and shopping w/others pointing out products, posting reviews, and going into stores (online or in-person)
informationinformation search rule
a consumer will search as long as the cost of the search is less that or equal to the expected savings from the search
innovation
somthing that is perceived as new or different
internal search
going over in there minds what they know about a product based on past searches or personal experiences
life stage
structure of the household, age of the youngest child, and family income.
market segment
A potion of a lager market whose needs differ somewhat from the larger
(a specific group of consumers)
marketing communications
advertisements, public relations, coupons, labels, packaging, billboards, instore displays, and other signals and messages that company provides about itself and its products
marketing mix
communications or information (to be discussed next) as well as product, price, distribution, and service
marketing strategy
a strategy formulated to addresses the question "How can we give excellent customer value to this target market?"
nationally advertised brands (NBs)
national brands that consumers know
need set
most products satisfy more than one need
nonfamily households
made up of householders who live either alone or with others to whom they are not related
ongoing search
infromation gathered for possible later use
looking in magazines w/ thoughts of future purchases
passive information
information encountered when one is doing somthing else.
eg. listening to music while driving
prepurchasing
what consumers are thinking about and how they are behaving in leading up to an actual purchases
One of the most studied areas in consumer behavior
pirating
stealing an original idea or product and selling it
Redirection
instructions are inserted into a bogus file
File spoofing
file is labeled as somthing else
often users hear static or part of a song
Interdiction
overloads a computer jamming the computer w/ traffic
price
the amount of money one pays to obtain the right to use a product
private label brands (PLs)
store brands
product placement
When a brand appears in a television show or movie
product positioning
give brands a specific and unique image or position in the minds of consumers with a target segment
psychographic measures
idealism, deal pron-ness, end-of-aisle display proneness, impulsiveness, brand loyalty, price/deal proneness, and smart-shopper self-perceptions
reference groups
collections of people that influence your decisions and behavior
sandwich generation
people in middle age who are supporting or taking care of children as well as aging parents
service
any activity preformed to enhance and sustain the primary product or service
sociodemographic variables
genter, age, education, income, and family size
socioeconomic index (SEI)
an index based on education level and occupation
target market
The largest, most likely group to purchase
trademark
a legal term that includes words, symbols, or marks that are legally registered for use by a company.