2. Concept
Cultural factors: It is the fundamental determinant of a
person’s wants and behaviour. Thus marketers closely
attend to cultural values to understand how to best market
existing and new products.
Kotler example: A child growing up in another country might
have a different view of self, relationship to others, and
rituals.
Local example: Trying to appeal to the growing number of
Koreans in the Philippines, Fast food places has added food
choices targeted to Koreans and Korean food lovers alike.
Med example: Doctors being sensitive when talking to other
races improves rapport
3. Concept
Social factors (opinion leaders): An opinion leader is the
person who offers informal advice or information about a
specific product or product category, such as which of
several brands is best or how a particular product may be
used.
Kotler example: Hot Topic, hoping to appeal to the fickle and
fashion conscious youth market, use music in a concerted
effort to monitor opinion leaders’ style and behavior.
Local example: Bloggers like Trisha Gosingtian affecting what
make up, shoes or clothes to buy through Instagram.
Med example: Doctors in conference and seminars promoting
new and proven techniques for quality medical service
4. Concept
Personal factors (occupation and economic circumstances):
Identifying the occupational groups that have interest in
products and services, even tailoring products for certain
occupational groups. The recent recession showed that both
product and brand choice are greatly affected by economic
circumstances (spendable income savings and assets ,debts,
borrowing power, and attitudes toward spending and saving).
Kotler example: Luxury-goods makers such as Gucci, Prada, and Burberry are
vulnerable to an economic downturn. If economic indicators point to a
recession, marketers can take steps to redesign, reposition, and re-price their
products
Local example: Quality food brands having budget packs that appeal to those
who need to save.
Med example: Procedures priced depending on the economic circumstances.
Dermatologist may re-price their procedures and products.
5. Concept
Perception: Perceptions are more important than reality,
because perceptions affect consumers’ actual behaviour. It
is the process by which we select, organize, and interpret
information to create a meaningful picture.
Kotler example: One person might perceive a fast-talking
salesperson as aggressive and insincere; another, as intelligent
and helpful. Each will respond to the salesperson differently.
Local example: Sales personnel in SM being too hospitable
can be perceived differently, some may see it helpful, others
may see it as intrusive.
Med example: The way doctors interact with patients may
affect patients differently
6. Concept
Emotions: Consumer response is not all cognitive and
rational; much may be emotional and invoke different
kinds of feelings (proud, excited, or confident).
Kotler example: tempur pedic creating a strong
emotional connection by positioning its mattresses as a
wellness brand and “the nighttime therapy for body and
mind”
Local example: Wearing Nike makes consumers more
confident and excited due to the brands image
RP example: Amateur athletes being treated by Sports
medicine doctors (treating famous players) makes
patients feel more confident post-op
7. Concept
Information sources: Major information sources to which
consumers will turn to are personal, commercial, public
and experiential. The influence of these sources vary with
the product category and buyers characteristics example,
Kotler example: Doctors often learn of new drugs from
commercial sources but turn to other doctors for evaluations.
Local example: Free taste or free trials in the supermarket
transforms consumers become experiential sources
RP example: Patients who were treated well by their doctors
become major information source that markets the doctor
8. Concept
Market partitioning : Identifying the hierarchy of attributes
that guide consumer decision making in order to
understand different competitive forces and how these
various sets get formed. These are brand dominant
hierarchy, nation-dominant-hierarchy, price dominant
hierarchy, type dominant hierarchy, etc
Kotler example: Buyers may first decide they want to buy a
German car, then Audi, and then the A4 model of Audi.
Local example: Buyers may first decide local or imported
cookie, then presto or bravo, then flavors
Med example: Patients first decides location of clinics, then
decides which doctor
9. Concept
Evaluation of alternatives: Consumer forms judgements
largely on a conscious and rational basis. The consumer is
first satisfying a need, the consumer then looks for certain
benefits from the product and lastly the consumer sees
each product as a bundle of attributes with varying abilities
to deliver benefits. Most attention is attributed to products
that deliver the sought-after benefits
Kotler example: Mouthwash -> Color, effectiveness, germ-
killing capacity, taste/flavor, price
Local example: Transportaion ->speed, convenience,
reliability, comfort
RP example: Doctor -> experienced, compassionate, price,
convenience
10. Concept
Intervening factors: Factors that intervene the purchase
intention and decision. 1.) attitudes of others 2.)
unanticipated situational factors
Kotler example: Consumer reports like J.D. Powers provide
consumer-based ratings of cars, financial service , travel
service and etc, that affects the attitudes of consumers. Ex.
paranormal activity after getting favorable reviews by
moviegoers created a buzz that help the movie gross $100
million
Local example: Zomato, a site that writes on restaurants alters
attitudes of diners
Med example: Patients that voice out satisfaction or
dissatisfaction alter patients/ potential patients attitudes.
11. Concept
Post purchase actions: Satisfied consumer is more likely to
purchase the product again and will also tend to say good things
about the brand to others, and vice versa. As part of post
purchase action, post purchase communications has been
shown to result in fewer product returns and order cancellations.
Kotler example: Computer companies can send a letter to new
owners congratulating them on having selected a fine computer.
They can place ads showing satisfied brand owners. They can solicit
customer suggestions for improvements and list the location of
available services.
Local example: PLDT that provides customer service to be able to
fix broken telephone lines and internet connection, also promoting
new and improved products and services
Med example: A doctor who continues to follow up patients will
more likely leave the patient satisfied
Editor's Notes
Marketers must closely attend to cultural values in every country to understand how to best market their existing products and find opportunities for new products.