AP Business Unit 2 Cheatsheet: Marketing

Marketing = all activities to identify customer problems, needs, wants and promote/sell/deliver products.

Why collect customer data?

• Determine which customers to serve
• Decide which products to produce
• Market products effectively and profitably

Two data types:

• Demographic: age, sex, race, ethnicity, income, location (measurable)
• Psychographic: interests, activities, values, lifestyles (cognitive/behavioral)

Collection methods: subscriber lists, online accounts, click-tracking, apps, social media monitoring, surveys, interviews, purchased data.

Market segmentation = grouping potential customers by shared demographic and psychographic traits.

Target customers = buyers most likely to purchase based on wants, needs, preferences.

Customer profile = fictional description of sample customer with demographic, psychographic data, wants, needs, preferences.

Why segment? Design products and marketing (branding, pricing, ads) that appeal to specific groups—more effective and less costly than broad appeal.

Customer relationships: personalized service, rewards programs, feedback surveys build loyalty, lower acquisition costs, increase lifetime value.

Decision types: rational (systematically evaluate) vs. habitual/routine (quick, minimal evaluation).

Influencing factors:

• Personal: age, income, education, occupation, lifestyle
• Psychological: values, beliefs, perceptions, learning, motivations
• Social/cultural: peers, family, social status, norms, media
• Situational: store design, timing, availability

Purchasing patterns = typical routine (timing, frequency, quantity) shaped by location, income, family/friend patterns.

Legal/tech influences: laws regulate what/when/where to buy; internet and smartphones created new shopping and information access.

Scarcity: rarer = more wanted. Tactic: "limited-time," "only one left."

Authority: obey authority figures. Tactic: expert endorsements, credentials.

Consensus: follow group norms. Tactic: positive customer feedback, "most people like this."

Liking: influenced by relatable people. Tactic: target-customer lookalikes in ads, personal rapport.

Reciprocity: obligated to return favors. Tactic: free trials, samples, gifts.

Consistency: repeat behavior matching self-image. Tactic: "health-conscious consumers buy this."

Unity: influenced when part of group. Tactic: exclusive groups, co-creation.