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The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
Production Orientation
Sales Orientation
Marketing Concept
PRODUCTION ORIENTATION
From the 1850s to the late 1920s Companies focus on production capabilities Consumer demand exceeded supply
Production Orientation
Sales Orientation
Marketing Concept
SALES ORIENTATION
From the 1930s to the mid 1950s Focus on selling Supply exceeded customer demand
Production Orientation
Sales Orientation
Marketing Concept
MARKETING CONCEPT
1950s to current - Focus on the customer! Determine the needs and wants of specific target markets Deliver satisfaction better than competition
Production Orientation
Sales Orientation
Marketing Concept
Price
Place
Promotion
Successful Relationships
Customer value High level of customer satisfaction Strong sense of customer trust Customer retention
SUCCESSFUL RELATIONSHIPS
Value, Satisfaction, Defined as the ratio between Trust, and Retention the customers perceived
Customer Value Customer Satisfaction Customer Trust Customer Retention benefits and the resources used to obtain those benefits
SUCCESSFUL RELATIONSHIPS
Value, Satisfaction, Trust, and Retention
Customer Value Customer Satisfaction Customer Trust Customer Retention The individual's perception of the performance of the product or service in relation to his or her expectations.
SUCCESSFUL RELATIONSHIPS
Value, Satisfaction, Trust, and Retention
Customer Value Customer Satisfaction Customer Trust Customer Retention
Establishing and maintaining trust is essential. Trust is the foundation for maintaining a longstanding relationship with customers.
SUCCESSFUL RELATIONSHIPS
Value, Satisfaction, Trust, and Retention
Customer Value Customer Satisfaction Customer Trust Customer Retention The objective of providing value is to retain highly satisfied customers. Loyal customers are key They buy more products They are less price sensitive Servicing them is cheaper They spread positive word of mouth
Economics
Sociology
Anthropology
Social psychology
Consumer sociology
Reference groups Group dynamics Social class
Why Do Marketers Regularly Test Print Ads Like This One Before They Are Placed in the Media?
To Test the Impact of the Message Before Spending Large Amounts of Money
SECONDARY DATA
Data that has been collected for reasons other than the specific research project at hand Includes internal and external data
External Data
Data collected by an outside organization Includes federal government, periodicals, newspapers, books, search engines Commercial data is also available from market research firms
MOTIVATION
TYPES OF NEEDS
Innate Needs
Physiological (or biogenic) needs considered primary needs or motives that are
Acquired Needs
Learned in response to our culture or environment. Are generally psychological and considered secondary needs
GOALS
The sought-after results of motivated behavior Generic goals are general categories of goals that consumers see as a way to fulfill their needs Product-specific goals are specifically branded products or services that consumers select as their goals
SUBSTITUTE GOALS
Are used when a consumer cannot attain a specific goal he/she anticipates will satisfy a need The substitute goal will dispel tension Substitute goals may actually replace the primary goal over time
FRUSTRATION
Failure to achieve a goal may result in frustration. Some adapt; others adopt defense mechanisms to protect their ego.
AROUSAL OF MOTIVES
Physiological arousal Emotional arousal Cognitive arousal Environmental arousal
The Ad Is Designed to Arouse Ones Yearning for an Adventurous Vacation by Appealing to the Sense of Touch
Egoistic Needs
Self-Actualization
A TRIO OF NEEDS
Power
individuals desire to control environment
Affiliation
need for friendship, acceptance, and belonging
Achievement
need for personal accomplishment closely related to egoistic and self-actualization needs
Affiliation Need
MEASUREMENT OF MOTIVES
Researchers rely on a combination of techniques Qualitative research is widely used Projective techniques are often very successful in identifying motives.
MOTIVATIONAL RESEARCH
Term coined in the 1950s by Dr. Ernest Dichter Based on premise that consumers are not always aware of their motivations Identifies underlying feelings, attitudes, and emotions
PERSONALITY
What Is the Personality Trait Characterizing the Consumers to Whom This Ad Appeals?
Theories of Personality
Freudian theory
Unconscious needs or drives are at the heart of human motivation
Trait theory
Quantitative approach to personality as a set of psychological traits
Freudian Theory
Id
Warehouse of primitive or instinctual needs for which individual seeks immediate satisfaction
Superego
Individuals internal expression of societys moral and ethical codes of conduct
Ego
Individuals conscious control that balances the demands of the id and superego
How Does This Marketing Message Apply the Notion of the Id?
It Captures Some of the Mystery and The Excitement Associated With the Forces of Primitive Drives.
Trait Theory
Focus on measurement of personality in terms of traits Trait - any distinguishing, relatively enduring way in which one individual differs from another Personality is linked to broad product categories and NOT specific brands
Watch a lot of TV Are family oriented Have a great sense of humor Are outgoing and loyal Like daytime talk shows Most likely to go to church
Passionate about reading Love pets Like meeting people for coffee Arent usually the life of the party
Sensation seeking
Consumer Innovativeness
Willingness to innovate Further broken down for hi-tech products
Global innovativeness Domain-specific innovativeness Innovative behavior
Dogmatism
A personality trait that reflects the degree of rigidity a person displays toward the unfamiliar and toward information that is contrary to his or her own established beliefs
Other-directedness
look to others less likely to be innovators
Sensation Seeking
The need for varied, novel, and complex sensations and experience. And the willingness to take social and physical risks for the sensations.
Variety-Novelty Seeking
Measures a consumers degree of variety seeking Examples include:
Exploratory Purchase Behavior Use Innovativeness Vicarious Exploration
PERCEPTION
Perception
The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world Elements of Perception
Sensation Absolute threshold Differential threshold Subliminal perception
Sensation
Sensation is the immediate and direct response of the sensory organs to stimuli
A stimulus is any unit of input to any of the senses.
The absolute threshold is the lowest level at which an individual can experience a sensation.
Subliminal Perception
Stimuli that are too weak or too brief to be consciously seen or heard
They may be strong enough to be perceived by one or more receptor cells.
Is it effective?
Extensive research has shown no evidence that subliminal advertising can cause behavior changes Some evidence that subliminal stimuli may influence affective reactions
Aspects of Perception
Selection
Organization
Interpretation
Perceptual Selection
Selection Depends Upon:
Includes the products physical attributes, package design, brand name, advertising and more
Motives
Selective Attention
Heightened awareness when stimuli meet their needs Consumers prefer different messages and medium
Perceptual Defense
Screening out of stimuli which are threatening
Perceptual Blocking
Consumers avoid being bombarded by: Tuning out TiVo
Organization
Principles
Figure and ground Grouping Closure
People tend to organize perceptions into figureand-ground relationships. The ground is usually hazy. Marketers usually design so the figure is the noticed stimuli.
Organization
Principles
Figure and ground Grouping Closure People group stimuli to form a unified impression or concept. Grouping helps memory and recall.
Organization
Principles
Figure and ground Grouping Closure
People have a need for closure and organize perceptions to form a complete picture. Will often fill in missing pieces Incomplete messages remembered more than complete
Interpretation
Stereotypes Stereotypes
Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect People hold meanings related to stimuli
Interpretation
Stereotypes Stereotypes
Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
Positive attributes of people they know to those who resemble them Important for model selection
Interpretation
Stereotypes Physical Appearances Descriptive Terms First Impressions Halo Effect
Interpretation
Stereotypes Stereotypes
Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
First impressions are lasting The perceiver is trying to determine which stimuli are relevant, important, or predictive
Interpretation
Stereotypes Stereotypes
Physical Appearances Physical Appearances Descriptive Terms Descriptive Terms First Impressions First Impressions Halo Effect Halo Effect
Consumers perceive and evaluate multiple objects based on just one dimension
Product Positioning
Establishing a specific image for a brand in the consumers mind in relation to competing brands Conveys the product in terms of how it fulfills a need Successful positioning creates a distinctive, positive brand image
Perceptual Mapping
An analytical technique that enables marketers to plot graphically consumers perceptions concerning product attributes of specific brands
Positioning of Services
Image is a key factor for services Services often want a differentiated positioning strategy to market several versions of their service to different markets.
SERVQUAL scale used to measure gap between customers expectation of service and perceptions of actual service
Price/Quality Relationship
The perception of price as an indicator of product quality (e.g., the higher the price, the higher the perceived quality of the product.)
Clientele
Discounts
Manufacturers Image
Favorable image tied to new product acceptance Companies sponsor community events to enhance images Product and institutional images
Perceived Risk
The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision Types
Functional Risk Physical Risk Financial Risk Social Risk Psychological Risk Time Risk
LEARNING
Learning
The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior
Response
Reinforcement
Behavioral Learning
Classical Conditioning
A behavioral learning theory according to which a stimulus is paired with another stimulus that elicits a known response that serves to produce the same response when used alone.
Why Did Gillette Use Two Different Ads to Advertise the Same Product?
Repetition of the Message with Varied Ads Results in More Information Processing by the Consumer
Having the same response to slightly different stimuli Helps me-too products to succeed Useful in:
product extensions family branding licensing
Which Concept of Behavioral Learning Applies to the Introduction of These Two Products?
Stimulus Generalization
What Is the Name of the Marketing Application Featured Here and Which Concept of Behavioral Learning Is It Based On?
Selection of a specific stimulus from similar stimuli Opposite of stimulus generalization This discrimination is the basis of positioning which looks for unique ways to fill needs
What Are the Names of the Marketing Application and the Behavioral Learning Concept Featured Here?
Reinforcement of Behavior
Reinforcement of Behavior
Extinction A learned response is no longer reinforced The link is eliminated between stimulus and reward Forgetting The reinforcement is forgotten
Knowledge
Evaluation Behavior
Awareness Knowledge
Awareness Knowledge
Interest Evaluation Evaluation Persuasion Purchase Trial Decision Postpurchase Adoption Confirmation Evaluation
Involvement
Degree of personal relevance that the product or purchase holds for that customer. High involvement purchases are very important to the consumer Low-involvement hold little relevance, have little perceived risk, and have limited information processing
I have a more favorable view of the military after seeing the slogan
The slogan showed me the military has certain advantages The slogan was meaningful to me The slogan was worth remembering
Left Brain
Rational Active Realistic
Right Brain
Emotional Metaphoric Impulsive Intuitive
What Is the Name of the Learning Theory Concept Featured in This Ad and How Is It Applied to Air Travel?
How Is Passive Learning Applied to the Promotional Appeal Featured in This Ad?
CULTURE
Culture
The sum total of learned beliefs, values, and customs that serve to regulate the consumer behavior of members of a particular society.
In Terms of Culture, Do You Consider This Product to Be a Good Morning Beverage? Why or Why Not?
Many Will Say NO Due to Lack of Nutritional Value and Competing Products (Coffee).
Culture Is Learned
Issues
Enculturation and acculturation Language and symbols Ritual Sharing of culture Enculturation
The learning of ones own culture
Acculturation
The learning of a new or foreign culture
Culture Is Learned
Issues
Enculturation and acculturation Language and symbols Ritual Sharing of culture Without a common language ,shared meaning could not exist Marketers must choose appropriate symbols in advertising Marketers can use known symbols for associations
Culture Is Learned
Issues
Enculturation and acculturation Language and symbols Ritual Sharing of culture
A ritual is a type of symbolic activity consisting of a series of steps Rituals extend over the human life cycle Marketers realize that rituals often involve products (artifacts)
Wedding
White gown (something old, something new, something borrowed, something blue)
U.S. Savings Bond, silver baby spoon
Birth of child
Card, present, cake with candles Catered party, card and gift, display of photos of the couples life together
Pen, U.S. Savings Bond, card, wristwatch Candy, card, flowers Champagne, party, fancy dress
Culture Is Learned
Issues
Enculturation and acculturation Language and symbols Ritual Sharing of Culture To be a cultural characteristic, a belief, value, or practice must be shared by a significant portion of the society Culture is transferred through family, schools, houses of worship, and media
Culture is Dynamic
Evolves because it fills needs Certain factors change culture
Technology Population shifts Resource shortages Wars Changing values Customs from other countries
Content Analysis
A method for systematically analyzing the content of verbal and/or pictorial communication. The method is frequently used to determine prevailing social values of a society.
Consumer Fieldwork
Field Observation
Natural setting Subject unaware Focus on observation of behavior
Participant Observation
A self-administered inventory consisting of eighteen terminal values (i.e., personal goals) and eighteen instrumental values (i.e., ways of reaching personal goals)
A value measurement instrument that asks consumers to identify their two most important values from a ninevalue list that is based on the terminal values of the Rokeach Value Survey
Activity
Progress
Individualism
Freedom
Humanitarianism
Youthfulness
Why Is State Farm Running Magazine Ads in Spanish? At Whom Are These Ads Directed?
Subculture
A distinct cultural group that exists as an identifiable segment within a larger, more complex society.
Catholic, Hindu, Mormon Eastern, Southern, Southwestern African American, Asian, Caucasian
Teenagers, Xers, elderly
Gender Occupation
Social class
Why Is Days Inn Running Ads in Spanish, and Who Are the Consumers Targeted by Such Ads?
Because Hispanic Americans who Speak Spanish as a First Language Tend to Prefer Spanish-Language Advertising
Religious Subcultures
200+ organized religious groups in the U.S. Primary organized faiths include:
Protestant denominations Roman Catholicism Islam Judaism
Consumer behavior symbolically and ritualistically associated with the celebration of religious holidays.
Regional Subcultures
Many regional differences exist in consumption behavior
Westerners have a mug of black coffee Easterners have a cup of coffee with milk and sugar White bread is preferred in the South and Midwest Rye and whole wheat are preferred on the East and West coasts
This Ad is Placed in Black Media which is Very Important to Many African Americans.
Generation Y
Generation X
Baby Boomers
Seniors
Generation Y
According to sources, born 1977-1994 OR 1982-2000 Three groups
Gen Y Adults 19-28 Gen Y Teens 13-18 Gen Y Tweens 8-12
Generation X
Born between 1965 and 1979 Also referred to as Xers, busters, or slackers Do not like labels, are cynical, and do not want to be marketed to
Baby Boomers
Born between 1946 1964 More than 40 percent of the adult population Motivated consumers Not anxious to retire and handle it as:
Opportunity for a new start A continuation of preretirement life Unwelcome disruption Transition to old age
Older Consumers
Roughly 65 years and older Growing segment due to better medical care, declining birthrate and the aging of the large baby boomer segment Three segments by age
The Young-Old (65-74) The Old (75-84) The Old-Old (85 and older)
Older Consumers
Segmentation can also be done on motivations and quality-of-life orientation Cyberseniors
Working Women
Segments of ALL women
Stay-at-home Plan-to-work Just-a-job working Career-oriented working
Subcultural Interaction
Marketers should strive to understand how multiple subcultural memberships jointly influence consumers behavior
Under What Circumstances Would This English-Language Ad Attract Affluent Consumers from Largely Non-English Speaking Countries?
If They Frequently Visit the United States and Regularly Read American Upscale Magazines
Why Do Most Global Airlines Stress Pampering Business Travelers in Their Ads?
The effort to determine to what extent the consumers of two or more nations are similar or different.
The income, social class, age, and sex of target customers may differ dramatically in two different countries.
Two countries may differ substantially in the level of consumption or use of products or services. Two nations may use or consume the same product in very different ways.
(continued)
FACTORS Differences in the criteria for evaluating products and services EXAMPLES The benefits sought from a service may differ from country to country.
Differences in economic and social conditions and family structure Differences in marketing research and conditions Differences in marketing research possibilities
The style of family decision making may vary significantly from country to country. The types and quality of retail outlets and direct-mail lists may vary greatly among countries. The availability of professional consumer researchers may vary considerably from country to country.
World Brands
Products that are manufactured, packaged, and positioned the same way regardless of the country in which they are sold.
Why Does One of the Worlds Most Highly Regarded Wristwatch Brands Use a Single Global Advertising Strategy (Only Varying the Language)?
They Speak to Them in Their Own Language to Maximize their Comfort Zone.
LOCALIZED PRODUCT
The only ultimate truth possible is that humans are both deeply the same and obviously different.
Devouts
Intimates Creatives
As You See It, What Is the Main Family Message of This Ad?
Consumer Socialization
The process by which children acquire the skills, knowledge, and attitudes necessary to function as consumers.
What Is the Name and Definition of the Process Depicted in This Ad?
Consumer Socialization - the Process by Which Children Acquire the Skills, Knowledge, Attitudes, and Experiences Necessary to Function as Consumers
To Which Stage of the Family Life Cycle Does This Ad Apply, and Why?
The ones who are would like to pursue new interests and fulfill unsatisfied needs
Likely to have fewer children. Want the best and live quality lifestyle
High divorce rate - about 50% lead to this Child out of wedlock Single person who adopts Adult children return home. Divorced adult returns home. Elderly move in with children. Newlyweds live with in-laws.
Social Class
The division of members of a society into a hierarchy of distinct status classes, so that members of each class have either higher or lower status than members of other classes.
SOCIAL CLASSES and PERCENTAGE Upper Upper-middle Middle Working 4.3% 13.8% 32.8% 32.3%
Lower
16.8%
Objective Measures
individuals answer specific socioeconomic questions and then are categorized according to answers
Objective Measures
Single-variable indexes
Occupation Education Income
Compositevariable indexes
Index of Status Characteristics Socioeconomic Status Score
Geodemographic Clusters
A composite segmentation strategy that uses both geographic variables (zip codes, neighborhoods) and demographic variables (e.g., income, occupation) to identify target markets.
Prizm Clusters
What Is the Name of the Segment Targeted by This Ad, and Why Is the Appeal Shown Here Used?
In What Ways Have the Prestige and Status of Geeks Been Changing?