Week 4

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Week 4

  1. 1. Consumer Behaviour <ul><li>WEEK 4 </li></ul>
  2. 2. Decision Making Process <ul><li>Choose a recent, relatively large purchase that you made </li></ul><ul><li>Jot down the different steps you went through to make your decision </li></ul>
  3. 3. 1: Need Recognition <ul><li>“ Difference between ideal and actual state” </li></ul><ul><li>Sources: </li></ul><ul><ul><li>Personally-Induced Need Recognition </li></ul></ul><ul><ul><li>Marketer-Induced Need Recognition </li></ul></ul>Reason for both inbound & outbound marketing tactics!
  4. 4. 2: Information Search <ul><li>Internal Search </li></ul><ul><ul><li>Scan information stored in memory </li></ul></ul><ul><li>External Search </li></ul><ul><ul><li>Additional information through personal sources, online, browsing, salespeople, and trial </li></ul></ul><ul><li>Evoked Set : the subset of brands that a consumer is aware of and considers for purchase </li></ul><ul><ul><li>Get your company’s name ‘top of mind’ </li></ul></ul>
  5. 5. 3: Alternative Evaluation <ul><li>Use of Rational Criteria </li></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Features/Function </li></ul></ul><ul><ul><li>Recommendations/Ratings </li></ul></ul><ul><li>Attitudes </li></ul><ul><ul><li>Positive and Negative Influencers </li></ul></ul><ul><ul><li>Tastes </li></ul></ul><ul><ul><li>Beliefs & Loyalty </li></ul></ul>
  6. 6. 4 & 5: Purchase Decision & Post-Purchase Evaluation <ul><li>Exchange of Goods or Services </li></ul><ul><li>Evaluation of Purchase </li></ul><ul><ul><li>Post-purchase dissonance </li></ul></ul><ul><ul><li>Brand loyalty adjustment </li></ul></ul>
  7. 7. Decision Making Need Recognition Information Search Alternative Evaluation Purchase Decision Post-purchase Evaluation Connect Convince Cultivate
  8. 8. The Marketing Mix
  9. 9. Marketing Mix <ul><li>The blend of the 4 components of marketing to satisfy the chosen market segment. </li></ul>Product All attributes of the offering that lead to want satisfaction – both tangible and intangible. Price The value that a consumer exchanges for a good or service. Place The channel and distribution infrastructure that facilitates the exchange process. Promotion Activities and messages to persuade and influence the consumer’s decision making.
  10. 10. Product Considerations <ul><li>Physical Goods </li></ul><ul><li>Tangible </li></ul><ul><li>Pre-developed </li></ul><ul><li>Consistency </li></ul><ul><li>Post-consumed </li></ul><ul><li>Ownership </li></ul><ul><li>Services </li></ul><ul><li>Intangible </li></ul><ul><li>Customer Involvement </li></ul><ul><li>Variability/Flexibility </li></ul><ul><li>Delivered in Real-time </li></ul><ul><li>No Ownership </li></ul>How do web-based businesses fit in?
  11. 11. Product Decisions <ul><li>Core Product + Supplementary Services </li></ul><ul><li>Features and Functions </li></ul><ul><li>Design </li></ul><ul><li>Service </li></ul>Online Catalog Shopping Product Recommendations Transaction Security Product Rating System Search Tools
  12. 12. When Product = Website <ul><li>Decisions focus on user experience: </li></ul><ul><ul><li>Information Architecture: organize your content in a way that satisfies the customer </li></ul></ul><ul><ul><li>Features and Functionality: support your product offering or promotional objectives </li></ul></ul><ul><ul><li>Supporting Technology </li></ul></ul><ul><ul><li>Design Layout and Writing for the Web </li></ul></ul><ul><li>Reputation and Attention is Currency </li></ul>Who is your product team?
  13. 13. When Product = Website
  14. 14. Price Considerations <ul><li>Profitability – Target Return </li></ul><ul><li>Volume – Maximize Sales/Market Share </li></ul><ul><li>Competition Pricing </li></ul><ul><li>Marketing Mix Consistency </li></ul>
  15. 15. Pricing Decisions <ul><li>Policies </li></ul><ul><ul><li>Skimming vs. Penetration </li></ul></ul><ul><ul><li>Flexible Pricing (bargaining) </li></ul></ul><ul><ul><li>Relative to Market (Winners) </li></ul></ul><ul><ul><li>Price Lining (dollar stores) </li></ul></ul><ul><ul><li>Promotional Pricing (liquidation centres) </li></ul></ul><ul><ul><li>Prestige Pricing (BMW) </li></ul></ul><ul><ul><li>Freemium Models (LinkedIn) </li></ul></ul>
  16. 16. Distribution Decisions <ul><li>Direct vs. Indirect (Retail, etc.) </li></ul><ul><ul><li>Control </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Positioning </li></ul></ul><ul><ul><li>Cost/Risk </li></ul></ul><ul><li>Online vs. Offline </li></ul><ul><ul><li>“ Place” </li></ul></ul><ul><li>Value Chain & Fulfillment </li></ul>
  17. 17. Promotion Decisions
  18. 18. Other P’s? <ul><li>People </li></ul><ul><li>Process </li></ul><ul><li>Productivity and Quality </li></ul><ul><li>Physical Evidence </li></ul>

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