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All ppts consumer b

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  • 1.  
  • 2.
    • To develop an understanding about the consumer decision making process and its applications in marketing functions of firm.
  • 3. INTERNET YOUR THOUGHT YOUR ACTION
  • 4.
    • WHAT ARE THE CHANGES IN DELIVERY FACTOR FOR THE FOLLOWING:
    A SMALL EXERCISE………….
  • 5.
    • THEN NOW
    • NEWS PAPER PAPER ONLINE
    • EARLIER CONSUMER HAVE TO GO TO SHOP TO BUY BUT NOW ----INTERNET---ONLINE.
    • CUSTOMISATION IS HAPPENING FROM SNEEKERS TO COMPUTERS. EXAMPLE: DELL
    • STUDENTS CAN GO ONLINE AND VIRTUALLY ATTEND CLASSESS-  BEFORE JOINING A UNIVERSITY
    • BOOKS ON LINE <<<<<<AMAZON.COM>>
    • CHANGE FROM AUCTION TO BUY AND SELL ONLINE: EBAY , BAZZE.COM ETC.
  • 6.
    • T.V VIEWERS----SKIP OPTION, RECORDER  ON DEMAND PREVIOUS SHOWS.
    MORE EXAMPLES:
  • 7. HOW THIS RELATED TO ME????
  • 8. DEFINING CONSUMER BEHAVIOUR.
  • 9.
    • C.B.  CONCERNS WITH HOW INDIVIDUAL MAKE DECISIONS TO SPEND THEIR AVAILABLE RESOURCES(TIME, MONEY,EFFORT) ON CONSUMPTION RELATED ITEMS.
    • WHAT THEY BUY, WHY THEY BUY, WHEN THEY BUY, WHERE THE BUY IT, HOW OFTEN THEY BUY, HOW OFTEN THEY USE IT, HOW THEY EVALUATE IT AFTER PURCHASE,IMPACT OF SUCH EVALUATIONS ON FUTURE PURCHASE, HOW OFTEN THEY DISPOSE IT.
    MORE DEFINATIONS….
  • 10.
    • FILL IN THE BLANKS WE ALL ARE UNIQUE BUT ONE THING IN COMMON.
    • S T U D Y W O O D
    • _ _ _ _ _ _ _ _ _
  • 11.
    • DEMAND FOR BASIC RAW MATERIAL
    • TRANSPORTATION
    • PRODUCTION
    • BANKING
    • EMPLOYMENT OF WORKERS
    • DEPLOYMENT OF RESOURCES.
  • 12. AS A MARKETER
  • 13. AS A MARKETER…….. FOCUS ON PERSONAL CONSUMERS(OWN USE)
  • 14. NOTES IN WORD FORMAT.
  • 15. INTRODUCTION TO C B PRODUCTION CONCEPT PRODUCT CONCEPT SELLING CONCEPT MARKETING CONCEPT
  • 16. BEFORE 1900 `S ONLY RICH 1908 FORD T MODEL = $850 PRODUCTION EFFICIENT: ASSEMBLY LINE-- $360
  • 17. PRODUCT CONCEPT
  • 18.
    • FOCUS ON SELLING
    • “ HARD SELLING – CONSUMER MAY NOT BUY AGAIN”
    • EXAMPLE: LIFE INSURNCE, POLITICAL PARTIES SELLING THEIR CANDIDATES AGGRESSIVELY.
    SELLING CONCEPT
  • 19.
    • EARLIER: SELLING WHAT PRODUCE.
    • FOUND: EASIER TO SELL –CONSUMER CONFIRED FIRST—RESEARCH.
    • FOCUS: CONSUMER NEEDS AND WANTS.
    • EXAMPLE: HENRY FORD Vs GM
    • CAR FOR EVERY PURSE AND PURPOSE(MARKET SEGMENTATION)
    • KFC (IN SHOP – ENTRY FROM DUMMY ROOM:ROAD SIDE EARLIER NOT PERCEIVED GOOD.
    • MC DONALDS: OPEN OUTLETS NEAR CHURCHES.
      • SO FROM MARKET SEGMENTATION  TARGETTING.
    MARKETING CONCEPT.
  • 20.
    • DIFFERENT FROM “ ME TOO” IMAGE  POSITIONING
    CONTINUEEE.
  • 21.
    • C B : MARKETER BORROWED FROM OTHER SCIENTIFIC DISCIPLINE AS CB NEW FIELD:
    • 1960`S
    • PSYCHOLOGY(study of individual)
    • SOCIOLOGY(study of groups)
    • SOCIAL PSYCHOLOGY(how individual operates in groups)
    • ANTHROPOLOGY(the influeunce of society on the individual)
    • ECONOMICS(earlier theories: indviduals act rationally to maximise their benefits(satisfaction) in purchase of goods and services………………
  • 22.
    • Later research facts: Consumer—purchase-impulsively—influence not only by family and friends, adv,role models but also>>>>>>>>>>>>>
            • MOODS
            • SITUATION
            • EMOTION
            • SO ON THE BASES OF THIS A COMPREHENSIVE MODEL OF CONSUMER BEHAVIOUR IS FORMED( BASE ON THE COGNITIVE AND EMOTIONAL ASPECTS OF CONSUMER DECISION MAKING).
  • 23.
    • EXTERNAL INFLUENCES
        • FIRMS MARKETING EFFORT SOCIOCULTURE ENVIRONMENT
    • 1.PRODUCT2.PROMOTION3.PRICE
    • 4. CHANNEL OF DISTRIBUTION
    • NEED RECOGNITION
    • PRE PURCHASE SEARCH
    • EVALUATION OF ALTERNATIVES
    • PURCHASE
    • TRIAL
    • REPEAT PURCHASE
    • POST PURCHASE EVALUATION
    INPUT PROCESS OUTPUT
    • FAMILY
    • INFORMAL SOURCES
    • SOCIAL CLASSES
    • CULTURE AND SUB CULTURE
    • PSYCHOLOGICAL FIELD
    • MOTIVATION
    • PERCEPTION
    • LEARNING
    • PERSONALITY
    • ATTITUDES
    EXPERIENCE
  • 24.
    • WHAT IS CONSUMER BEHAVIOUR
    • WHY SHOULD WE STUDY IT
    • DO MARKETING MANAGERS,REGULATOR ETC USE KNOWLEDGE ABOUT CB TO DEVELOP MARKETING STRATEGY.
    • WILL SOUND KNOWLEDGE OF CB WILL HELP YOU IN YOUR CAREER?
    • HOW DOES C B IMPACT QUALITY OF OUR LIVES AND ENVIRONMENT.
    • HOW CAN WE ORGANISE OUR KNOWLEDGE OF C B IN ORDER TO UNDERSTAND AND USE IT MORE EFFECTIVELY.
  • 25.
    • MAHARASTRA:
    • SALE OF ICECREAM VERY GOOD. COMPANY ZZ
    • OTHER PARTS SALES DOWN
    • DID A RESEARCH………….
        • FAMILY PRODUCT Vs TEENAGER
        • PROMOTION FAMILY Vs LIVE,YOUNG,TEEN PERSON
    POSITIONING WAS REDONE: RESULT 25% INCREASE. EVEN IN SEASON NOT WINTER SALES VERY GOOD. SO WE STUDY INDIRECT INFLUENCE ON CONSUMER PURCHASE. SCOPE IS BIGGER THAN JUST PURCHASER AND SELLER.
  • 26.
    • MATCH COMPETITOR PRICE REDUCTION.
        • HOW CONSUMER EVALUATE PRICES
        • HOW THEY WOULD RESPOND TO PRICE DIFFERENTIAL BETWEEN THE BRAND.
    EXAMPLE 2. PROTECT CHILDREN FROM VARIOUS MARKETING PRACTISES ON THE WEB. ASSUMPTION: CHILDREN ABALITY TO PROCESS INFORMATION AND MAKE DECISION IN THIS ENVIRONMENT.
  • 27.  
  • 28. MORE EXAMPLES
    • CB BASED ON ASSUMPTIONS.
    • BAN OF CIGRATTEE ADVER….
    • ASSUMPTION: IT IFLUENCE HIGHER CONSUMPTION
    • EXAMPLE 2. BAN OF SALE OF CIGRETTEE NEAR 100 METERS OF SCHOOL, AS ASSUMPTION BELOW 18 Yrs AGE EFFECT ON TRAIL HABBIT FORMING BEHAVIOUR.
  • 29.
    • SOCIAL MARKETING: USE TO ALTER AND CREATE BEHAVIOUR.
    • CONSUMPTION SOCIETIES: MORE ON CONSUMTION THAN OTHER: SO UNDERSTANDING IS ESSENTIAL FOR SOUND CITIZENSHIP,EFFECTIVE PURCHASING BEHAVIOUR.
  • 30. VALUE CONCEPT.
  • 31.
    • LA CHOY-  FROZEN FOODS--  LARGE MEAT FROZEN ROLLS  TO BE USED AS MAIN COURSE THAN APPETIZERS 
    • ?????????????WITHDRAWN FROM MARKET?
    • REASON: LARGE ROLLS NEED MORE TIME(30 MIN) IN REGULAR OWEN AND CANNOT BE MICROWAVED.
  • 32. CB AND MARKETING STRATEGY: UNDERSTANDING OF CB IS BASIS FOR MARKETING STARTEGY FORMULATION. INDIVIDUAL, FIRM , SOCIETY CONSUMER DECISION PROCESS PROBLEM RECOGNITION INFORMATION SEARCH ALTERNATIVE EVALUATION,PURCHASE,USE,EVALUATION . MARKET ANALYSIS COMPANY,COMPETITOR,CONDITIONS,CONSUMERS. MARKET SEGMENTATION IDENTIFY PRODUCT RELATED NEED SETS,GROUP CUSTOMERS WITH SIMILAR NEEDS,DESCRIBE EACH GROUP,SELECT THE ATTRACTIVE SEGMENTS TO TARGET . MARKETING STRATEGY PRODUCT,PRICING,DISTRIBUTION,PROMOTION,SERVICES(CRUX: TO ADD VALUE VIS A VIS COMPETITOR. ALSO CALLED AS TOTAL PRODUCT. HERE THE PRODUCT IS SEND IN TARGET MARKET FORMULATION OF MARKETING STRATEGY HERE.
  • 33. EXTERNAL INFLUENCES CULTURE SUBCULTURE DEMOGRAPHICS SOCIAL STATUS REFERENCE GROUPS FAMILY MARKETING ACTIVITIES INTERNAL INFLUENCES PERCEPTION LEARNING MEMORY MOTIVES PERSONALITY EMOTIONS ATTITUDE SELF CONCEPT & LIFESTYLE DECISION PROCESS SITUATIONS PROBLEM RECOGNITION INFORMATION SEARCH ALTERNATIVE EVALUATION AND SELECTION OUTLET SELECTION AN PURCHASE POST PURCHASE PROCESS NEEDS DESIRE EXPERIENCES AND ACQUISITIONS EXPERIENCES AND ACQUISITIONS
  • 34. SEGMENT SIZE SGMENT GROWTH COMPETITOR STRENGTH CUSTOMER SATISFACTION WITH EXISTING PRODUCT FIT WITH COMPANY IMAGE FIT WITH COMPANY OBJECTIVE FIT WITH COMPANY RESOURCES DISTRIBUTION AVALIABLE INVESTMENT REQUIRED STABILITY/PREDICTIBILITY COST TO SERVE SUSTAINABLE ADVANTAGE AVAILABLE COMMUNICATION CHANNEL AVAILABLE RISK OTHERS -------- --------- --------- ---------- -------- ----------- ---------- ----------- ----------- ------------ -------------- ----------- -------------- --------- -------- CRITERION SCORE SCORE ON A 1 TO 10 SCALE, WITH 10 BEING MOST FAVOURABLE. MARKET SEGMENT ATTRACTIVE WORKSHEET
  • 35. SEE WHAT NEEDS TO BE DONE.
    • EXAMPLE: CHANGE-PRODUCT PROMOTION—EARLIER—ON CHOCOLATE FLAVOUR
    • NOW—ON SMARTNESS OF CHILD DUE TO ESSENTIAL INGREDIENTS.
  • 36. REMEMBER ALWAYS……..
  • 37. YOU NEED TO KNOW.
  • 38. REMEMBER THIS…….. CONSUMER DON`T PURCHASE QUARTER-INCH DRILL BITS BUT THE ABALITY TO CREATE QUARTER- INCH HOLES.
  • 39. EXPLAINED THROUGH EXAMPLE.
    • FEDERAL EXPRESS: WORLD LEADING COURIER OR LOGISTIC COMPANY.
    • LOST MUCH OF OVERNIGHT LETTER DELIVERY BUSINESS NOT TO UPS OR AIRBONE BUT TO FAX MACHINE AND INTERNET.(FASTER CHEAPER AND MORE CONVINIENT.
    • PRODUCT-> PHYSICAL & PRIMARY OR CORE SERVICE
  • 40. NEED OF CONSUMER BEHAVIOUR STUDY
    • EXAMPLE: EVERY YEAR: 15000 NEW PRODUCT OR NEW VERSION: MANY NOT SUCCEED.
    • EXAMPLE:MARUTI A STAR, TATA NANO IN NORTH, SUBWAY EARLIER, GADJETS ETC, OMAX MALLS IN LUDHIANA. ANSAL PLAZA IN LUDHIANA.
    • NEW BUDGET HOTELS GROWTH.
  • 41.
    • ADV,SALE FORCE, PUBLIC RELATION, PACKAGING OTHER SIGNALS TO CONSUMER FROM FIRM.
    • AN AFFECTIVE:C INSURES
    • WITH WHOME, EXACTLY DO WE WANT TO COMMUNICATE.
    • WHAT EFFECT WILL HAVE ON TARGET AUDIENCE.
    • WHAT MESSAGE—DESIRE EFFECT ON AUDIENCE.
    • WHAT MEANS AND MEDIA.
    • WHEN SHOULD WE COMMUNICATE.
  • 42. PRICE: AMOUNT OF MONEY ONE MUST PAY TO OBTAIN THE RIGHT TO USE THE PRODUCT
  • 43. EVERYTING THE CUSTOMER MUST SURRENDER IN ORDER TO RECEIVE THE BENEFITS OF OWING/USING THE PRODUCT.
  • 44.  
  • 45.
    • INCREASE THE VALUE: REDUCE THE NON PRICE COST OF OWING OR OPERATING THE PRODUCT.
    • HOW?????????????????
    • RISK PERCEIVED BY THE CUSTOMER IN INVESTING IN THE PRODUCT.
    • Example: Real estate
  • 46.  
  • 47. Example: HULLY CORPORATION $700 MILLION BICYCLE MANUFACTURE. LAUNCED BICYCLE $ 159 CROSS SPORT: A CROSS BETWEEN MOUNTAIN BIKE AND THIN FRAMED 10 SPEED BICYCLE. AFTER RESEARCH FOCUSED GROUP AND PRODUCT CONCEPT TEST(CONSUMER ACCEPTENCE). LAUNCHED THROUGH MASS DISTRIBUTION. KMART , TOYS ‘R’ US. BUT FLOPPED THIS NEEDED GOOD KNOWLEDGE SALES PERSON, DEMAND INDIVIDUAL SALES ATTENTION NOT MASS DISTRIBUTION.
  • 48.  
  • 49.  
  • 50. C . D PROCESS INTERVENCES BETWEEN THE MARKETING STRATEGY AND OUTCOME
  • 51.  
  • 52. FIRMS OUTCOME
    • PRODUCT POSITION:
    • IMAGE –IN CONSUMER MIND—VIS A VIS COMPETITIOR. SET OF BELIEFS,PICTORIAL REPRESENTATIONS,FEELING ABOUT THE PRODUCT OR BRAND.
    EX. SAUZA TEQUILLA. “ LIFE IS HARSH, YOUR TEQUILLA SHOULDN`T BE” ----- RESULT 2 TIMES INCREASE IN SALES B. CREATING SATISFIED CUSTOMERS.
  • 53. B. CREATING SATISFIED CUSTOMERS. OUR TOTAL PRODUCT COMPETITOR TOTAL PRODUCT CONSUMER DECISION PROCESS SUPERIOR VALUE EXPECTED SALES PERCEIVED VALUE DELIVERED CUSTOMER SATISFIED
  • 54. A. NEED SATISFACTION . ACTUAL NEED FULLFILLMENT AND PERCEIVED NEED FULLFILLMENT. EXAMPLE: FOOD SUPPLYMENT. YOU BELIVE BUT NO DIRECT HEALTH EFFECT OR EVEN NEGETIVE B. INJURIOUS CONSUMPTION YOU FULLFILL ONE NEED BUT THIS EFFECT THEIR ABILITY TO FULLFILL OTHER. EXAMPLE: MOST AMERICANS LIFESTYLE NOW, CANNOT RETAIL WHEN RETIREMENT. RESULT: FINANCIAL DISTRESS, FAMILY STRESS, BANKRUPTCY, BY PASS MEDICAL, DENTAL CARE OR EVEN HOMELESSNESS.
  • 55. 10 MILLION AMERICAN SUFFER FINANCIAL LOSS  GAMBLING. 10 AND 80 MILLION ALCHOLIC AND CIGRETTE SMOKERS. EVERY YEAR 25000 DIE RESULT OF ALCHOLIC RELATED TRAFFIC ACCIDENT.
  • 56. ECONOMY OUTCOME
  • 57. WHY DO CONSUMER CARE ABOUT SOME PRODUCTS,BRANDS AND NOT OTHERS. SOME ARE HIGHLY MOTIVATED TO SEEK INFORMATION OTHERS – NO INTEREST. SO ARROW/FOCUS TOWARDS UNDERSTANDING CONSUMER INVOLVEMENT
  • 58.
    • 1985: CHANGED TASTE…MORE SWEETER.
      • RESULT: OLD COKE DRINKERS…CLASS-ACTION SUIT.AGAINST COCA COLA.
      • BOTTLER`S JOINED IN DEMAND---FOR COKE RETURN.
      • MILLION DOLLARS SPENT TO CORRECT IT.
      • WHAT A MISSS…………….
      • CONSUMER HAD STRONG EMOTIONAL INVOLVEMENT WITH ORIGINAL COKE .
  • 59.  
  • 60.
    • MEANS: A CONSUMER PERCEPTION OF IMPORTANCE OR PERSONAL RELEVENCE FOR AN OBJECT, EVENT OR ACTIVITY.
    • INVOLVEMENT AS 2 ASPECT:
  • 61. CONTINUEE…….
  • 62. SO INVOLVEMENT COGNATIVE AFFECTIVE(this effect more on behaviour-> decision making)
  • 63.
    • Felt involvement: consumer experience only at certain times and on certain occasions.
    • I DO NOT WANT TO BUY HOUSE
    • I NEED TO BUY HOUSE: AS MY PERSONAL RELEVANCE/END KNOWLEDGE OF THE PRODUCT ACTIVATED.
    Continue……..
  • 64.  
  • 65. SO AS A MARKETER:::::::::: SEE FOCUS INVOLVEMENT OF CUSTOMERS. WHAT CUSTOMER CONSIDER TO BE PERSONALLY RELEVANT  IS IT A PRODUCT, BRAND, AN OBJECT, A BEHAVIOUR, EVENT, SITUATION, ENVIRONMENT. SEE WHAT END KNOWLEDGE/BASES IS IMPORTANT FOR INVOLVEMENT:
  • 66. COGNITION  JUSTINE PAUL AND HAWKINGS BOOK)
    • HUMAN – SOPHISTICATED SYSTEM 
        • PERFORMS HIGHER MENTAL PROCESSESS :
            • UNDERSTANDING
            • PLANNING
            • DECDIDING
            • THINKING
    SO IT REFERS TO ALL THESE MENTAL PROCESSES, AS WELL AS THOUGHTS AND MEANI G PRODUCE BY COGNITIVE SYSTEM.
  • 67. ENVIRONMENT AFFECTIVE SYSTEM COGNITIVE SYSTEM AFFECTIVE RESPONSES COGNITIVE RESPONCES
    • EMOTIONS
    • FEELING
    • MOODS
    • EVALUATION
    • KNOWLEDGE
    • MEANING
    • BELIEFS
  • 68.
    • LETS SEE HOW ARE 2 INTERRELATED:
    • YOU PRODUCE A STIMULI:::::: MY FIRST AFFECTIVE RESPONSE WILL BE GENERATED::::WHICH IN TURN CAN BE INTERPRETED BY COGNITIVE SYSTEM.
      • Example: ‘ I WONDER WHY I FEEL SO HAPPY’
      • EXAMPLE 2: I DON`T LIKE THIS INSURANCE AGENT BECAUSE HE DONOT POSSESS GOOD KNOWLEDGE OF INVESTMENTS.
  • 69. EXAMPLE 2: I DON`T LIKE THIS INSURANCE AGENT BECAUSE HE DONOT POSSESS GOOD KNOWLEDGE OF INVESTMENTS.
    • NOW AFTER YOU KNOW THAT THIS INSURANCE AGENT DONOT POSSESS GOOD INVESTMENT KNOWLEDGE  YOU WILL TAKE DECISION:
      • MEANING  YOUR COGNITIVE INTERPRETATION  LED TO YOUR DECISION MAKING.
      • “ I WON`T BUY INSURANCE FROM THIS PERSON”
      • STIMULI—AFFECTIVE  COGNITIVE: INTERPRETATION  DECISION MAKING.
  • 70. PURCHASE BEHAVIOUR IS COMPLEX FUNCTION OF:::::::::::::
  • 71. AFFECTIVE AND COGNITIVE
    • AFFECTIVE: SOMETHING PEOPLE FEEL.
      • I AM ANGRY
      • RAHUL IS IN GOOD MOOD
      • ROHIT FFELS BORED
        • ALL ABOVE FELT IN THE BODY
      • CONGNITIVE: PEOPLE HAVE THOUGHTS AND BELIEFS( ALL MENTAL PROCESSES)
      • - YOUR MOTHER BELIVES DIET PEPSI IS NOT FATTENING:
      • ALL ABOVE NOT FELT IN THE BODY
  • 72. AFFECTIVE SYSTEM: IS
    • LARGELY REACTIVE, THIS SYSTEM RESPONDS IMMEDIATELY AND AUTOMATICALLY:
      • YOUR ATTRACTIVE. TOWARDS COLOR
      • A PERSON HAVE LITTLE DIRECT CONTROL OVER THEIR AFFECTIVE RESPONCES.
  • 73. 5 BASIC CHARACTERISTIC OF AFFECTIVE SYSTEM
    • IS LARGELY REACTIVE
    • PEOPLE HAVE LITTLE DIRECT CONTROL OVER THEIR AFFECTIVE RESPONCES.
      • EXAMPLE: YOU ARE INSULTED BY A RUDE SALE CLERK:
        • YOU DO  MOVING TO ANOTHER ENVIRONMENT OR COMPLAIN TO MANAGER:
          • THIS WILL DECREASE YOUR NEGETIVE AFFECT YOU FELT.
  • 74. CONTINUE………..
    • 3. RESPONCESES FELT PHYSICALLY IN THE BODY.
    • : “BUTTERFLIES IN YOUR STOMACH” ASSOCIATED WITH EXCITEMENT OF MAKING AN IMPORTANT PURCHASE, A NEW CAR . HOUSE ETC.
  • 75. 4. CAN RESPOND TO VIRTUALLY ANY TYPE OF STIMULAS.
    • PHYSICAL OBJECT: I LOVE MY SONY STEREO SYSTEM.
    • I DISLIKE TALKING TO THE SALES PERSON IN THE ELECTRONIC STORE(SOCIAL SITUATION)
      • AFFECTIVE SYSTEM CAN ALSO RESPOND TO THEIR OWN BEHAVIOUR:
        • I ENJOY PLAYING MY STEREO SYSTEM
  • 76. CONTINUE….
    • 5. CONSUMER AFFECTIVE SYSTEM CAN RESPOND TO THOUGHTS PRODUCE BY THEOR COGNITIVE SYSTEM,
      • “ I LIKE TO THINK ABOUT STEREO SYSTEM”
  • 77. CONGNITION:
    • ALL MENTAL PROCESSESS. THOUGTS AND MEANING`S PRODUCE BY THE COGNITIVE SYSTEM. LIKE:
      • 1.UNDERSTANING: INTERPRETING Or DETERMINING THE MEANING OF SPECIFIC ASPECTS OF ONE`S OWN ENVIRONMENT.
      • 2. EVALUATING: JUDGING WHETHER AN ASPECT OF THE ENVIRONMENT, OR ONE`S OWN BEHAVIOUR IS GOOD OR BAD., POSITIVE , NEGETIVE, FAVOURABLE OR UNFAVOURABLE.
  • 78. 3.PLANNING  DETERMING HOW TO SOLVE PROBLEM TO REACH A GOAL 4.DECIDING  COMPARING ALTERNATIVES AND SELECTING THE BEST. 5.THINKING  COGNITIVE ACTIVITY THAT OCCURS DURING ALL THESES PROCESSES( THINKING PROCESS OF ALL ABOVE: FUNCTION OF C. SYSTEM: TO INTERPRET, MAKE SENCE OF AND UNDERSTANDING SIGNIFICANT ASPECTS OF THEIR PERSONAL EXPERIENCES:
  • 79. MARKETING IMPLICATIONS
    • BOTH AFFECT AND COGNITION IMPORTANT FOR UNDERSTANDING C.B.
    • OUR TARGET IS TO PROVIDE SATISFACTON  HOW THIS WILL COME:
    • SATISFACTION HAVE BOTH ELEMENTS OF AFFECT(FEELING ,PLEASED, LIKING THE PRODUCT OR SERVICE) AND COGNITION(KNOWING WHY YOU LIKE THE PRODUCT.:
  • 80. BRAND IMAGE: EXAMPLE
    • BRAND IMAGE INCLUDES:
      • KNOWLEDGE AND BELIEF(COGNITIVE) ABOUT
        • PRODUCT ATTRIBUTES
        • CONSEQUENCES OF BRAND USE
        • APPROPRIATE CONSUMPTION SITUATIONS
        • AS WELL AS FEELING AND EMOTIONS(AFFECTIVE RESPONSES) ASSOCIATED WITH THE BRAND.
  • 81.
    • HOW TO SEARCH: INTERNET OTHER WAYS.
    INFORMATION SEARCH PROCESS: FROM HAWKINGS CHAPTER 15-16 COMPANIES NOT ONLY FOCUSING ON NOT ONLY PRODUCT INFORMATION. EXAMPLE : REVLON ::::PRODUCT INFO EXTENSIVE CORPORATE INFO BEAUTI INFO TICKETS COMPANY: MOVIE TICKETS , TRAILOR, NE MOVIES REVIEWS ETC
  • 82.
    • EX: YOUR TELEVISION QUIT WORKING
    • EX: YOU FELT REST LESS
    • EX: YOUR SCOOTER IS CHOKED:
        • YOU TRY TO REMEMBER WHAT YO DID OR DIAL EARLIER IN THOSE SITUATIONS.
          • OR
          • YOU WILL TRY TO FIND OUT OR GET ADDITIONAL INFO:
          •  I WILL CHECK THE YELLOW PAGES TO SEE WHO REPAIRS MY BRAND OF TELEVISION.
    NATURE OF INFORMATION SEARCH
  • 83.
    • INTERNAL AND EXTERNAL:
      • UNDER INTERNAL: ONCE  PROBLEM IS RECOGNISED:  YOU USE  LONG TERM MEMORY TO FING SOLUTIONS.
      • IF YOU DO NOT REACH SOLUTION THANT YOU GO FOR EXTERNAL SEARCH.
      • EXAMPLE: YOU CATCH COLD  YOU BUY COLDRIN:::::::: SEARCH FINICHES HERE.
    2 TYPES OF SEARCH
  • 84.
    • SOUGHT EXTERNAL INFO:
      • OPINION, FEELING OF FRIEND, RELITIVE, NEIGHBOURS ETC.
      • PROFESSIONAL INFO-> PAMFLETS, WEBSITE, BOOKS , ARTCLES
      • DIRECT EXPERIENCE WITH THE PRODUCT THROUGH INSPECTION, TRIAL OR OBSERVATION.
      • MARKETER-GENERATED INFORMATION PRESENTED IN ADV, WEBSITE, SALES PERSONNAL
      • ONGOING SEARCH: EXAMPLE MOBILE  YOU KEEP ON LOOKING FOR NEW PRODUCT WITHOUT RECOGNISED PROBLEM
    OTHERWISE:
  • 85. INFORMATION SEARCH IN CONSUMER DECISION. WHAT EVALUATIVE CRITERIA ARE NEEDED WHAT SOLUTIONS EXITS WHAT IS THE PERFORMANCE OF EACH SOLUTION ON EACH EVALUATIVE CRITERIOR INFORMATION SEARCH TERMINATED CAN A DECISION BE MADE YES INFORMATION SEARCH CONTINUOUS NO
  • 86.
    • EXAMPLE LAPTOP:
    • IF YOU KNOW YOUR NEEDS: THIS FORMS YOUR CRITERIA
      • Else you have little experience -> go for External Search.
          • Your friends, PC magazine, sale person, website other.
    EVALUATION CRITERIA So CRUX IS: YOU MAY USE INTERNAL AND EXTERNAL FOR SEARCH FOR DETERMINATION OF APPROPRIATE EVALUATIVE CRITERIA. YOU DECIDE EVALUATIVE CRITERIA
  • 87. AWARENESS SET IBM APPLE NEC TOSHIBA COMPAQ HP FUJITSU SONY EVOKED SET: IBM APPLE COMPAQ INERT SET TOSHIBA SONY HP NEC INEPT SET FUJISTU 1 ST PREFERENCE WILL BUY FROM THIS LOT HE WILL BUY FROM THIS SET IF EVOKED SET IS NOT AVAILABLE. TOTALLY NOT INTERESTED CRUX: MARKETER NOT ONLY TO TARGET AWARENESS SET BUT ALSO EVOKED & INERT SET
  • 88. INFORMATION SOURCES FOR A PURCHASE DECISION INFORMATION SOURCES PASSIVELY ACQUIRED ACTIVELY ACQUIRED ACTIVELY ACQUIRED EXTERNAL INFORMATION INTERNAL INFORMATION PAST SEARCHES PERSONAL EXPERIENCES LOW INVOLVEMENT LEARNING INDEPENDENTGROUP , PERSONALCONTACT, MARKETER INFO, EXPERIMENTAL.
  • 89.
    • MAINTENANCE STRATEGY
    • DISRUPT STRATEGY
    • CAPTURE STRATEGY
    • INTERCEPT STRATEGY
    • PREFERENCE STRATEGY
    • ACCEPTANCE STRATEGY
    MARKETING STRATEGIES BASED ON INFORMATION SEARCH PATTERN
  • 90.
    • YOU HAVE TO MAINTAIN IT: BRAND IS PURCHASED HABITUALLY BY TARGET AUDIENCE.
      • YOU ENSURE:
        • DISTRIBUTION(AVOIDING OUT OF STOCK)
        • REINFORCEMENT ADVERTISING
        • CONSISTANT ATTENTION TO PRODUCT QUALITY
    MAINTENANCE STRATEGY
  • 91.
    • WHEN YOUR BRAND IS NOT PART OF EVOKED SET.
    • YOUR JOB IS TO:
      • DISRUPT THE EXISTING DECISION PATTERN
      • LOW INVOLVEMENT LEARNING
      • IN LONG RUN A MAJOR PRODUCT IMPROVEMENT
      • IN SHORT RUN  ACCOMPANIED BY ATTENTION ATTRACTING ADVERTISING AIMED AT BREAKING HABITUAL DECISION MAKING.
    DISRUPT STRATEGY
  • 92.
    • WHEN YOUR EVALUATIVE CRITERIA IS PRICE AND AVAILABILITY.
      • YOUR FOCUS:
        • TO CAPTURE LaRGE SHARE OF THEIR PURCHASE.
        • KNOW WHERE THEY SEARCH AND WHAT INFORMATION
        • SO FOCUS MORE IN LOCAL MEDIA, POINT OF PURCHASE.
    3. CAPTURE STRATEGY
  • 93.
    • YOU(MARKETER): INTERCEPT THE CONSUMER DURING THE SEARCH FOR INFORMATION ON BRANDS IN THE EVOKED SET.
    • YOU EMPASISE--:> LOCAL MEDIA WITH CO-OPERATIVE ADVERTISING
      • POINT OF PURCHASE WITH DISPLAY
      • SHELF SPACE
      • PACKAGE DESIGN AND SO FORTH.
    4. INTERCEPT STRATEGY.
  • 94.
    • AS IN EVOKED SET AS NO. OF BRANDS ARE THERE.
    • HOW YOU DIFFERENT FROM OTHERS, SO ONLY CAPTURE STRATEGY NOT ENOUGH.
    • SO YOU(MARKETER) NEED TO STRUCTURE INFORMATION.
    • CAMPAIGN  RESULT – BRAND BEING PREFFERED BY MEMBERS OF THE TARGET MARKET.
    5. PREFERENCE STRATEGY
  • 95.
    • MORE OR LESS SIMILAR TO PREFERENCE STRATEGY.
    • TARGET MARKET  NOT INTERESTED TO ADDITIONAL INFO  ? BUT MAY BE VERY IMP TO  MARKETER.
    • YOUR(MARKETER) TASK IS TO ATTRACT CONSUMER-> ATTENTION  MOTIVATE THEM  LEARN ABOUT BRAND.
    • EX: CHRYSLER IN ADDITION TO PRODUCT IMPRO AND HEAVY ADVER  LIETRALLY PAID CONSUMER TO SEEK INFORMATION ABOUT HIS CARS.
    6. ACCEPTENCE STRATEGY
  • 96.
    • ABOVE IS AN EXAMPLE OF VARIOUS TECHNIOQUE FOR EVALUATIVE CRITERIA AND DECISION RULES.
    • 1. THEY USED: CONSUMER USAGE & ATTITUDE SURVEY.
    •  WHAT PURPOSE THE PRODUCT IS USED
    •  FREQUENCY OF USE, BRAND OWNERSHIP
    •  BRAND AWARENESS, ATTITUDE TOWARDS PRODUCT.
    EXAMPLE: SUNBEAM APPLIANCE COMPANY  FOOD PROCESSOR
  • 97.
    • 2. A CONSUMER ATTRIBUTE AND BENEFIT SURVEY:
    • TO PROVIDE IMPORTANT RATING OF PRODUCT ATTRIBUTE AND BENEFIT FROM PRODUCT CATOGARY.
    • DEGREE TO WHICH EACH BRAND PROVIDES VARIOUS ATTRIBUTE AND BENEFITS.
    • 3. CONJOINT ANALYSIS:
    •  M EANS: RELATIVE IMPORTANCE EACH CONSUMER ATTACHES TO VARIOUS LEVELS OF EACH POTENTIAL PRODUCT FEATURES .
    CONTINUE…
  • 98.
    • PREFERENCE FOR PRODUCT FEATURES AND THEIR WILLINGNESS TO TRADE ONE FEATURE FOR MORE OF ANOTHER FEATURE.
    • 4. PRODUCT LINE SALES AND MARKET SHARE SIMULATIONS:( TO DECIDE BEST SET OF PRODUCT TO BRING TO MARKET)
    • -> BASED ON PREFERENCE STRUCTURES AND SIZES OF THE MARKET SEGMENT AS PER STEP 3 & PERCEIVED CHARACTERISTICS OF COMPETING BRANDS, THE MARKET SHARE OF VARIOUS SUNBEAM PRODUCTS SETS WAS ESTIMATED USING COMPUTER SIMULATION.
    CONTINUE…
  • 99.
    • EXISTING PRODUCT LINE WAS REPLACED BY 4 NEW MODELS( DOWN FROM 6).
    • INCREASED MARKET SHARE,
    • REDUCED COSTS,
    • INCREASED PROFITABILITY.
    RESULT OF THIS WORK::::::
  • 100. ALTERNATIVE EVALUATION AND SELECTION PROCESSS EVALUATIVE CRITERIA IMPORTANCE OF CRITERIA EVALUATION OF ALTERNATIVES ON EACH CRITERIA ALTERNATIVES CONSIDERED DECISION RULES APPLIED ALTERNATIVE SELECTED
    • 3 TYPES OF CONSUMER CHOICE PROCESSESS:
    • AFFECTIVE CHOICE
    • ATTITUDE BASED
    • ATTRIBUTE BASED
  • 101.
    • ARE VARIOUS DIMENSIONS, FEATURES OR BENEFITS A CONSUMER LOOKS FOR IN RESPONSE TO A SPECIFIC PROBLEM.
        • COMPUTER: BEFORE PURCHASING  COST, SPEED, MEMORY, O S, DISPLAY , MEMORY , WARRANTY  WOULD BE YOUR EVALUATIVE CRITERIA FOR YOU FOR OTHER IT CAN BE DIFFERENT.
        • EX: WANT TO AVOID CAVATIES USE TOOTHPASTE CONTAINING FLOURIDE. HERE FLOURIDE IS EVALUATIVE CRITERIA ASSOCIATED WITH THE BENEFIT OIF CAVITY PREVENTION.
    DEFINE EVALUATIVE CRITERIA
  • 102. HOW IT IS RELATED TO ME?
  • 103.
    • A TYPICAL PRODUCT FEATURE OR BENEFIT ASSOCIATED WITH EITHER BENEFITS DESIRED BY CUSTOMER OR THE COST THEY MUST INCURR.
    • REMEMBER 3 THINGS YOU(MARKETER) BEFORE YOU MAKE STRATEGY……
    • WHAT EVALUATIVE CRITERIA ARE USED BY THE CONSUMERS.
    • HOW THE CONSUMER PERCEIVES THE VARIOUS ALTERNATIVES ON EACH CRITERION.
    • THE RELATIVE IMPORTANCE OF EACH CRITERION.
    NATURE OF EVALUATIVE CRITERIA?
  • 104. EXAMPLE: NOTEBOOK: MEASUREMENT OF EVALUATIVE CRITERION IMPORTANCE RANKS: MORE CONCERNED= 1, LEAST CONCERNED = 2 CRITERION CONSUMER A CONSUMER B CONSUMER C PRICE 1 6 3 PROCESSOR 5 1 4 DISPLAY QUALITY 3 3 1 MEMORY 6 2 5 WEIGHT 4 4 2 AFTER SALE SUPPORT 2 5 6
  • 105.
    • DIRECT METHODS
    • INDIRECT METHOD.
      • DIRECT METHOD: ASKING CONSUMER DIRECTLY AS THE CASE OF LAPTOP FEATURE OR IN CASE OF SUNBEAM PRODUCT COMPANY.
      • INDIRECT: CONSUMER DO NOT SAY OR CANNOT STATE THEIR EVALUATIVE CRITERIA.
      • INDIRECT METHODS SUCH AS PPROJECTIVE TECHNIQUES  1. ASSOCIATION TECHNIQUE
      • 2. COMPLETION TECHNIQUE. 3. CONSTRUCTION TECHNIQUE.
    DETERMINATION OF WHICH EVALUATIVE CRITERIA ARE USED. HAWKINGS: 627
  • 106.
    • 1. ASSOCIATION TECHNIQUE:
    • a  WORD ASSOCIATION
    • B  SUCCESSIVE WORD ASSOCIATION
    • C  ANALYSIS AND USE
    • 2. COMPLETION TECHNIQUE
    • A  SENTENCE COMPLETION
    • B  STORY COMPLETION
    • 3. CONSTRUCTION TECHNIQUE
    • A  CARTOON TECHNIQUE
    • B  THIRD PERSON TECHNIQUE( CONSUMER TELL WHY” AN AVERAGE WOMEN”. MOST DOCTORS, PEOPLE IN GENERAL
    • C  PICTURE RESPONSE.
    INDIRECT TECHNIQUES(PROJECTIVE TECHNIQUES): PAGE 402 HAWKINS
  • 107.
    • INVOLVES: CONSUMER LOOKING AT POSSIBLE PAIRS OF BRAND AND INDICATING WHICH PAIR IS MOST SIMILAR, SECOND MOST SIMILAR AND SO ON.
    • HELP OF COMPUTER IS USED FOR THIS PLOTING.
    • THIS HELPS THE MARKETER TO KNOW/UNDERSTAND CONSUMER`S PERCEPTION AND THE EVALUATIVE CRITERIA THEY USE TO DIFFERENTIATE BRANS.
    PERCEPTUAL MAPPING: INDIRECT TECHNIQUE FOR DETERMINING EVALUATIVE CRITERIA.
  • 108. EXAMPLE: PERCEPTUAL MAPPING OF BEER BRAND PERCEPTION. HIGH PRICE, HIGH QUALITY, HIGH STATUS LIGHT TASTE, LESS CALORIES,LESS FILLING HEAVY TASTE, MORE CALORIES, MORE FILLING LOW PRICE, LOW QUALITY, LOW STATUS *MICHELOB LIGHT *BUD LIGHT *MILLER LIGHT *HEINEKEN *CORONA *STROHS
    • OLY GOLD
        • HAMMS
    *BUSCH *MILWAUKEE`S BEST *GENERIC BEER
  • 109.
    • SOME METHODS USED:
    • RANK ORDER
    • SEMANTIC DIFFERENTIAL SCALES
    • LIKERTS SCAL
    • CHECK FROM HAWKINGS: TABLE 11-1
    FOR DETERMINING HOW CONSUMER PERCEIVES VARIUOS ALTERNATIVE ON EACH CRITERION
  • 110.
    • DIRECT METHOD: USE CONSTANT SUM
    • INDIRECT METHOD: USE CONJOINT ANALYSIS.
    • CONJOINT: HERE CONSUMER IS PRESENTED WITH A SET OF PRODUCTS or PRODUCT DESCRIPTIONS IN WHICH THE EVALUATIVE CRITERIA VARY.
    • EXAMPLE: CONSUMER PRESENTED WITH 24 NOTE BOOKS THAT VARY ON FOUR CRITERIA.
    DETERMINATION OF RELITIVE IMPORTANCE OF EVALUATIVE CRRITERIA
  • 111.  
  • 112. COSUMER MOTIVATION(From SL Gupta)
    • NEEDS AND WANTS:
      • EXAMPLE: URBAN GUY AND RURAL GUY
      • (LUNCH BREAK)BOTH ARE/FEEL HUNGRY: BOTH WANT FOOD TO SATISFY HUNGER.
      • URBAN  GO FOR PIZZA
      • RURLA  PARANTHAS
        • IN BOTH CASE WANT IS SAME BUT NEED IS DIFFERNET TO SATISFY WANT.
        • ITS CLEAR THAT NEEDS IS INFLUENCED BY ONE`S SURROUNDING, FAMILY, FRIENDS, LEARNING , EXPERIENCE.
  • 113. NEEDS AND ITYS TYPES
    • BIOGENIC: NEED FOR AIR,WATER,SUNLIGHT
    • PHYSICAL: NEDD FOR FOOD, SHELTER(ROTI, KAPDA AND MAKAN)
    • PSYCHOGENIC(NEEDS ACQUIRED  IN PROCESS OF BECOMING A MEMBER OF A PARTICULAR SOCIETY.
  • 114. CATOGRASING NEED IN MODERN SOCIETIES:
    • a. NEED FOR AFFLIATION:
      • EX: “ MIL BAYTHENGE TEN YAAR,APP,MAIN AUR NAYA BAGPIPER”
        • FOCUS: ON DESIRE FOR FRIENDSHIP, TO BE PART OF CERTAIN GROUP, SENCE OF BELONGING.
        • VERY IMPORTANT THESE DAYS: LOT OF GROUP ACTIVITIES ARE PROMOTED  CLUB ACTIVITY, SUNDAY SPORT, LADIES KITTY PARTY.
        • HAR EK FRIEND ZAROORI HOTA HAI(AIRTEL): GROUP ACTIVITIES.
  • 115. NEEED FOR POWER.
    • B. RELATES TO  INDIVIDUSL DESIRE TO CONTROL HIS/HER ENVIRONMENT.
    • EGO NEED, DESIRE TO EXERCISE POWER ON A PERSON OR OBJECT.
    • EXAMPLE: ITC CIGARETTE AD EMPHASISES THE POWER NEED.
  • 116. C. NEED FOR UNIQUENESS
    • A PRODUCT THAT PROMISES TO ACCENTUATE THE CONSUMER`S DISTINCTIVE QUALITY WILL FALL IN THIS CATOGARY.
      • : “ UNIQUE”-> FEELING BY WEARING CLOTHES OF UNISTYLE.
  • 117. HIERARCHY OF NEEDS:
    • BY . Dr ABRAHAM MASLOWS:
    EGO NEEDS,(PRESTIGE,STATUS, SELF RESPECT, ACCOMPLISHMENTS) SELF ACTUALISATION(SELF FULLFILMENT ENNRICHING EXPERIENCE) SOCIAL NEEDS(SENCE OF BELONGINGNESS, FRIENSHIP, AFFECTTION) SAFETY AND SECURITY(PROTECTION, ORDER, STABILITY) PHYSIOLOGICAL NEEDS(FOOD, WATER,AIR,SHELTER)
  • 118. SELF ACTUALISATION NNED
    • I DESIRE TO JOIN THE ARMED FORCES-->:
    • EXAMPLE: MUSICIAN PRACTISING SEVERAL HOURS A DAY  FOR YEARS TO PERFECT HIMSELF
    • EXAMPLE: PLAYER WORKING SINGLE MINDED FOR MANY YEARS TO EXCEL IN HIS SPORT.
    • ( UNDER STANT ALL THE NEEDS TO MAKE CORRECT MARKETING STARTEGIES)
  • 119. MOTIVATION
    • WHAT IS THIS: LATIN WORD  “ MOVERE” MEANS “ TO MOVE”.
    • IT’S A PSYCHOLOGICAL CONCEPTH THAT MOBILISES BODILY ENERGY AND DIRECTS IT IN SELECTIVE FASHION TOWARDS GOALS USUALLY LOCATED IN THE EXTERNAL ENVIRONMENT.
    • IS AN INNER URGE THAT IMPLIES AN INDIVIDUAL TO ACT OR NOT TO ACT IN CERTAIN WAYS.
    •  EACH AND EVERY PART OF IT IS GUIDED BY MOTIVES– CONSCIUOS OR OTHERWISE.
  • 120. AS A MARKETER:
  • 121. MOTIVATION: 2 COMPONENTS
    • MECHANISM TO AROUSE BODILY ENERGY
    • FORCE THAT PROVIDED DIRECTION TO BODILY ENERGY.
    • EXAMPLE: HUNGER IS AN AROUSED FEELING  WHICH CREATES RESTLESSNESS AND BODILY TENSION:
    • WHILE THE DIRECTION TOWARDS A PARTICULAR FOOD WILL BRING US BACK TO A STATE OF REST FREEING US OF TENSION.
  • 122. UNFULLFILLED NEEDS DRIVE STRENGTH TENSION DRIVE DIRECTION BEHAVIOUR GOAL FULLFILMENT CULTURAL BACKROUND PERSONAL BACKROUND COGNATIVE PROCESSESS PAST LEARNING TENSION REDUCTION
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