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What are 3 Buying Motives?
1. Thrift/Make Money
3. Protection/ Safety
4. Ease/ Connivence
Mental States Theory aka A.I.D.A.S. Theory
Sales presentation: strong opener is to get your attention, Sales people want customers to ask Q's, Buying signal, Repeat Sales.
-Attention, Interest, Desire, Action, Satisfaction-
Maslow's Hierarchy of Needs
Physical: food, water, shelter, safety, protection
Social: love, Belonging (parents, marital status, best friend), Prestige/status (coworkers, friends, neighbors)
Self Actualization: need to perfect ones talents and abilities for yourself
Balance of Trade- Favorable
-exports > imports
-more dollars coming into the us
-Owners get profit
-Workers get higher salaries
-Government benefits (taxes)
Factors that affect a companies ability to business in a foreign market
-Government protection of domestic industry
-Currency Exchange Rates
Value of Dollar
As value of currency goes up pressure to raise prices
As value of currency goes down flexibility to lower your prices.
Factors that affect buying and selling in the industrial market
-reliability of supply: on time delivery, back orders (bad)
The demand for the industrial product is determined by the demand for the consumer product that the industrial product becomes apart of
vendor is telling me they cannot ship the merchandise on time, order still stands will ship later.
Goods, Services, and Ideas that have features and benefits
Features tell what the product is but its the benefits that actually sell the product.
Benefits satisfy the needs and wants of the target market
Connivence Impulse goods
Candy, cigarettes, disposable razors
-lower priced products
-consumption is quick
-high traffic areas
-require intensive distribution (producer needs to get the product into as many retailers in a given geographical area).
-Little or no planning and comparison shopping when it comes to consumer
-lowest quality and performance
opposite of impulse goods (furniture, automobiles, electronics)
-Generally high prices
-Selective distribution (few stores and retailers in a geographical area)
-planning and comparison shipping
-high quality and performance
-low traffic areas
-Highest quality and performance
-people wont accept substitutes (brand insistence)
Unsought goods/Emergency Goods
-Needed right away
-willing to pay a premium pice (maybe illegal, price gouging, loose customers)
The total group of products that an organization makes available to customers (every item offered for sale)
A group of closely related product items viewed as a unity because of marketing technical, or end use considerations (grouping of products that are related in some way)
Product Life Cycle-Introduction (1)
Promote Product: object is to educate/inform our target market and how our product is going to benefit them
you do this with a particular slogan
-the concept/idea that we want to pop into the consumers mind when the see/hear our products brand name
Product Life Cycle - Period of growth (sales) (2)
Promotion: competitive nature persuade target market that your product is better
Ex: It has a lower price
Product Life Cycle - Maturity (3)
Sales/ profits at highest point
Promotion: remind people that your company is there
Product Life Cycle- Period of Decline (4)
sales and profit declining
Prolong the like of product: discounts, lower price, add new features, enhance benefits, add new benefits
What is the purpose of patents?
To encourage the research and development of new products
Ex: if your company couldn't get a patent other companies could make the same product for much less money.
part of brand that is spoken
brand becomes the trademark the exclusive right to use it
not only can people not copy it they cant use it
Functions of a brand - companies point of view
-a way to differentiate your product with other products
-can build loyalty which ends up in repeat sales
-introduce new products
-adds to the value of your company
Functions of a brand- consumer view
- pre judge the quality and performance of a product
-vote for the products they want to stay in the marketplace
-brand enables to a consumer to repeat purchases of a product they like
consumer seeks out your brand/product (buy your brand when available)
if brand isnt available a consumer will buy a substitute
Explain the difference between brand loyalty and brand insistence
Seek out your brand but if its not available they wont buy a substitute
Two reasons why retailers carry private brands
-reduces/eliminates the consumers ability to comparison shop in the area of price
3 characteristics of a good package
acts as a silent sales person
easy to stack/store
Straight Rebuy Purchase
A routine purchase of the same products under approximately the same terms of sale by a business buyer
MOdified Rebuy Purchase
A new task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified. MIght seek faster delivery, lower prices, or different quality.
Buying Center- is as group of people within an organization who make business purchase decisions
Influencers- technical personnel
Deciders- actually choose the products
an organization's decision to use several suppliers
Advantage: lessens the probability of strikes, shortages
An organization's decision to use only one supplier
advantage: when product is available from only one company
North American Free Trade Agreement
An alliance that merges Canada, Mexico and the US into a single market.
Goal: to eliminate nearly all tariffs on goods produced and traded among these countries
The European Union
An alliance that promotes trade among its member countries in Europe.
France and Italy
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